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.
Braze (BRZE)
One-Year Revenue Growth: +25.8%
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 Does BRZE Stand Out?
- ARR growth averaged 26.8% over the last year, showing customers are willing to take multi-year bets on its offerings
- Net revenue retention rate of 114% demonstrates its ability to expand within existing accounts through upsells and cross-sells
- Operating margin improvement of 10.1 percentage points over the last year demonstrates its ability to scale efficiently
At $34.86 per share, Braze trades at 5.2x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
MercadoLibre (MELI)
One-Year Revenue Growth: +37.7%
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
Why Is MELI a Good Business?
- Unique Active Buyers have grown by 19.7% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Platform’s growing usage and its ability to increase user spending by 16.9% annually showcases its high switching costs
- Strong free cash flow margin of 30.2% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
MercadoLibre’s stock price of $2,520 implies a valuation ratio of 30.3x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
IonQ (IONQ)
One-Year Revenue Growth: +69.9%
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE:IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Do We Love IONQ?
- Annual revenue growth of 78.8% over the past two years was outstanding, reflecting market share gains this cycle
- Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability
IonQ is trading at $44.40 per share, or 102.5x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment.
Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.