
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. Keeping that in mind, here are three growth stocks expanding their competitive advantages.
Nvidia (NVDA)
One-Year Revenue Growth: +83.4%
Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ: NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.
Why Is NVDA a Good Business?
- Market share has increased this cycle as its 77.4% annual revenue growth over the last two years was exceptional
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Strong free cash flow margin of 42.5% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
Nvidia is trading at $225.37 per share, or 18x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Hamilton Lane (HLNE)
One-Year Revenue Growth: +24%
With over $100 billion in assets under management and supervision, Hamilton Lane (NASDAQ: HLNE) is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors.
Why Should You Buy HLNE?
- Annual revenue growth of 19.6% over the past five years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last two years have been more profitable as its earnings per share increased by 20.5% annually, topping its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $103.28 per share, Hamilton Lane trades at 14.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Fair Isaac Corporation (FICO)
One-Year Revenue Growth: +24.1%
Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE: FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.
What Makes FICO Stand Out?
- Share buybacks catapulted its annual earnings per share growth to 33.8%, which outperformed its revenue gains over the last two years
- FICO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
- Improving returns on capital reflect management’s ability to monetize investments
Fair Isaac Corporation’s stock price of $1,104 implies a valuation ratio of 21.8x forward P/E. Is now a good time to buy? See for yourself 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 ServiceNow (+164% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
