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.
Broadcom (AVGO)
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.
Why Do We Love AVGO?
- 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.
StepStone Group (STEP)
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.
Why Is STEP on Our Radar?
- 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 comprehensive research report, it’s free.
Nubank (NU)
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.
Why Are We Bullish on NU?
- 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.
High-Quality Stocks for All Market Conditions
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.