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3 Growth Stocks with All-Star Potential

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 expanding their competitive advantages.
Confluent (CFLT)
One-Year Revenue Growth: +24%
Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.
Why Does CFLT Stand Out?
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Winning new contracts that can potentially increase in value as its billings growth has averaged 26.4% over the last year
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Customers use its software daily and increase their spending every year, as seen in its 119% net revenue retention rate
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Forecasted revenue growth of 20.8% for the next 12 months indicates its momentum over the last three years is sustainable
At $26.25 per share, Confluent trades at 7.2x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free .
Toast (TOST)
One-Year Revenue Growth: +28.3%
Founded by three MIT engineers at a local Cambridge bar, Toast (NYSE:TOST) provides integrated point-of-sale (POS) hardware, software, and payments solutions for restaurants.
Why Are We Positive On TOST?
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Customers view its software as mission-critical to their operations as its ARR has averaged 30.6% growth over the last year
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Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
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Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Toast is trading at $34.30 per share, or 3.3x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free .
Robinhood (HOOD)
One-Year Revenue Growth: +58.2%
With a mission to democratize finance, Robinhood (NASDAQ:HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Why Are We Bullish on HOOD?
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Monetization efforts are paying off as its average revenue per user has grown by 43.9% annually over the last two years
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Incremental sales significantly boosted profitability as its annual earnings per share growth of 30.5% over the last three years outstripped its revenue performance
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Free cash flow margin increased significantly over the last four years, giving the company more capital to invest or return to shareholders
Robinhood’s stock price of $38.65 implies a valuation ratio of 19.3x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free .
Stocks We Like Even More
The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we’re zeroing in on the stocks that could benefit immensely.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks . This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free .