Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. That said, here are three growth stocks expanding their competitive advantages.
Shopify (SHOP)
One-Year Revenue Growth: +30.1%
Starting with just three people selling snowboards online in 2004, Shopify (NYSE: SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
Why Do We Love SHOP?
- Billings growth has averaged 30.7% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Expected revenue growth of 27.5% for the next year suggests its market share will rise
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Shopify’s stock price of $118.11 implies a valuation ratio of 10.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Upstart (UPST)
One-Year Revenue Growth: +64%
Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ: UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.
Why Do We Like UPST?
- Loan originations on its platform are soaring as they averaged 51.6% growth over the last year, enabling the company to collect more fees and expand into new markets like credit cards.
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
At $26.51 per share, Upstart trades at 2.1x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Sterling (STRL)
One-Year Revenue Growth: +17.7%
Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ: STRL) provides civil infrastructure construction.
Why Will STRL Beat the Market?
- Market share has increased this cycle as its 12.4% annual revenue growth over the last two years was exceptional
- Strong free cash flow margin of 15.2% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
- Returns on capital are growing as management capitalizes on its market opportunities
Sterling is trading at $406.73 per share, or 31.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
