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. On that note, here are three growth stocks with significant upside potential.
Cloudflare (NET)
One-Year Revenue Growth: +29.8%
With a massive network spanning more than 310 cities in over 120 countries, Cloudflare (NYSE: NET) provides a global network that delivers security, performance and reliability services to protect websites, applications, and corporate networks.
Why Will NET Outperform?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 33% over the last year
- Expected revenue growth of 28.8% for the next year suggests its market share will rise
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Cloudflare is trading at $213.14 per share, or 26.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
e.l.f. Beauty (ELF)
One-Year Revenue Growth: +16.7%
Short for "eyes, lips, face", e.l.f. Beauty (NYSE: ELF) is a developer of high-quality beauty products at accessible price points.
Why Are We Positive On ELF?
- Remarkable 45.2% revenue growth over the last three years demonstrates its ability to capture significant market share
- Earnings growth has massively outpaced its peers over the last three years as its EPS has compounded at 38.2% annually
- Free cash flow margin increased by 12.2 percentage points over the last year, giving the company more capital to invest or return to shareholders
e.l.f. Beauty’s stock price of $75.39 implies a valuation ratio of 22.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
CECO Environmental (CECO)
One-Year Revenue Growth: +38.8%
With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ: CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.
Why Do We Love CECO?
- Annual revenue growth of 19.2% over the past two years was outstanding, reflecting market share gains this cycle
- Market share is on track to rise over the next 12 months as its 23.2% projected revenue growth implies demand will accelerate from its two-year trend
- Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
At $59.21 per share, CECO Environmental trades at 38.3x 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
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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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
