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.
Montrose (MEG)
One-Year Revenue Growth: +17.8%
Founded to protect a tree-lined two-lane road, Montrose (NYSE: MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.
Why Does MEG Stand Out?
- Impressive 18% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 132% over the last two years outstripped its revenue performance
- Free cash flow margin jumped by 12.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Montrose is trading at $28 per share, or 22.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Inspire Medical Systems (INSP)
One-Year Revenue Growth: +22%
Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE: INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.
Why Do We Love INSP?
- Measured rollout of new domestic medical centers communicates a gradual expansion strategy
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 22.5% annually
- Free cash flow margin increased by 31.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $74.20 per share, Inspire Medical Systems trades at 25x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
SouthState (SSB)
One-Year Revenue Growth: +28.6%
With roots dating back to the Great Depression era of 1933, SouthState (NYSE: SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.
Why Will SSB Outperform?
- Impressive 31% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Expected net interest income growth of 24.5% for the next year suggests its market share will rise
- Earnings per share grew by 6.1% annually over the last two years, massively outpacing its peers
SouthState’s stock price of $98.87 implies a valuation ratio of 1.1x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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