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. Keeping that in mind, here are three growth stocks with significant upside potential.
Dutch Bros (BROS)
One-Year Revenue Growth: +29.6%
Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE:BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.
Why Do We Like BROS?
- Rapid rollout of new restaurants to capitalize on market opportunities makes sense given its strong same-store sales performance
- Average same-store sales growth of 6% over the past two years indicates its restaurants are resonating with diners
- Notable projected revenue growth of 27.7% for the next 12 months hints at market share gains
At $38.47 per share, Dutch Bros trades at 33.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Nextpower (NXT)
One-Year Revenue Growth: +17%
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextpower (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun.
What Makes NXT Stand Out?
- Impressive 15.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Free cash flow margin grew by 23.4 percentage points over the last five years, giving the company more chips to play with
- Rising returns on capital show management is finding more attractive investment opportunities
Nextpower is trading at $79.79 per share, or 17x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Shift4 (FOUR)
One-Year Revenue Growth: +32.4%
Starting as a payment gateway provider in 1999 and now processing over $200 billion in annual payment volume, Shift4 Payments (NYSE:FOUR) provides integrated payment processing solutions and software that help businesses accept and manage transactions across in-store, online, and mobile channels.
Why Are We Bullish on FOUR?
- Market share has increased this cycle as its 28.1% 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 31.9% outpaced its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Shift4’s stock price of $38.43 implies a valuation ratio of 6.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.