Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. Keeping that in mind, here are three growth stocks expanding their competitive advantages.
Braze (BRZE)
One-Year Revenue Growth: +22.7%
Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ: BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns.
Why Could BRZE Be a Winner?
- Ability to secure long-term commitments with customers is evident in its 23.1% ARR growth over the last year
- Forecasted revenue growth of 18.5% for the next 12 months indicates its momentum over the last three years is sustainable
- Operating margin improvement of 8.5 percentage points over the last year demonstrates its ability to scale efficiently
Braze is trading at $27.02 per share, or 3.8x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
BrightSpring Health Services (BTSG)
One-Year Revenue Growth: +28.1%
Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.
Why Does BTSG Stand Out?
- Annual revenue growth of 21.3% over the last two years was superb and indicates its market share increased during this cycle
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Earnings growth has trumped its peers over the last four years as its EPS has compounded at 26.3% annually
At $20.84 per share, BrightSpring Health Services trades at 20.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
German American Bancorp (GABC)
One-Year Revenue Growth: +19.9%
Founded in 1910 during a wave of community banking expansion in the Midwest, German American Bancorp (NASDAQ: GABC) is a financial holding company that provides banking, wealth management, and insurance services across southern Indiana and Kentucky.
Why Do We Like GABC?
- Annual net interest income growth of 13.3% over the last five years was superb and indicates its market share increased during this cycle
- Demand for the next 12 months is expected to accelerate above its five-year trend as Wall Street forecasts robust net interest income growth of 26.9%
- Projected tangible book value per share growth of 16.7% for the next 12 months is above its two-year trend, pointing to accelerating profitability
German American Bancorp’s stock price of $38.41 implies a valuation ratio of 1.3x forward P/B. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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