Growth is oxygen. But when it evaporates, the consequences can be severe – ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.
Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. That said, here are three growth stocks where the best is yet to come.
CrowdStrike (CRWD)
One-Year Revenue Growth: +21.7%
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ:CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Are We Bullish on CRWD?
-
Billings have averaged 26% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
-
Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
-
User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
At $563.23 per share, CrowdStrike trades at 23.9x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
Shopify (SHOP)
One-Year Revenue Growth: +31.8%
Starting with just three people selling snowboards online in 2004, Shopify (NASDAQ:SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
Why Is SHOP a Top Pick?
-
Average billings growth of 32.3% over the last year enhances its liquidity and shows there is steady demand for its products
-
Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
-
Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Shopify’s stock price of $95.75 implies a valuation ratio of 8.4x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Pinterest (PINS)
One-Year Revenue Growth: +16.3%
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Why Do We Love PINS?
-
Monthly Active Users have increased by an average of 11.2% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
-
Share repurchases over the last three years enabled its annual earnings per share growth of 40.9% to outpace its revenue gains
-
Strong free cash flow margin of 26.5% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business