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.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. On that note, here are three growth stocks with significant upside potential.
One-Year Revenue Growth: +48.7%
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Annual revenue growth of 38% over the last two years was superb and indicates its market share increased during this cycle
Earnings per share grew by 29.8% annually over the last five years and trumped its peers
AVGO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $363.85 per share, Broadcom trades at 21.3x forward P/E. Is now the right time to buy? Find out in our full research report, it's free.
One-Year Revenue Growth: +40.3%
Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ:STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.
Market share has increased this cycle as its 37.3% annual revenue growth over the last two years was exceptional
Earnings growth has trumped its peers over the last two years as its EPS has compounded at 24.7% annually
StepStone Group's stock price of $49.97 implies a valuation ratio of 19.2x forward P/E. Is now a good time to buy? See for yourself in our full research report, it's free.
One-Year Revenue Growth: +48.2%
With well over one hundred million customers across Brazil, Mexico, and Colombia through its viral member-get-member referral program, Nubank (NYSE:NU) is a digital banking platform that offers financial services including spending, saving, investing, borrowing, and protection products to millions of customers across Latin America.
Market share has increased this cycle as its 40.6% annual revenue growth over the last two years was exceptional
Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 53% outpaced its revenue gains
ROE punches in at 14%, illustrating management's expertise in identifying profitable investments
Nubank is trading at $14.95 per share, or 16.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free.
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.