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.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. That said, here are three growth stocks expanding their competitive advantages.
Vertiv (VRT)
One-Year Revenue Growth: +28.8%
Formerly part of Emerson Electric, Vertiv (NYSE:VRT) manufactures and services infrastructure technology products for data centers and communication networks.
Why Is VRT a Top Pick?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 21% over the past two years
- Free cash flow margin expanded by 7.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are climbing as management makes more lucrative bets
Vertiv’s stock price of $185.95 implies a valuation ratio of 38.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Ares (ARES)
One-Year Revenue Growth: +24%
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE:ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Why Will ARES Beat the Market?
- Market share has increased this cycle as its 19.2% annual revenue growth over the last five years was exceptional
- 33.6% annual growth in fee-related earnings over the last five years shows the firm optimized its expenses
- Earnings growth has comfortably beaten the peer group average over the last five years as its EPS has compounded at 17.9% annually
At $148.55 per share, Ares trades at 24.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Halozyme Therapeutics (HALO)
One-Year Revenue Growth: +31.2%
Known for transforming hours-long intravenous infusions into minutes-long subcutaneous injections, Halozyme Therapeutics (NASDAQ:HALO) develops and licenses its proprietary ENHANZE technology that enables subcutaneous delivery of injectable drugs that would otherwise require intravenous administration.
Why Does HALO Stand Out?
- Annual revenue growth of 44.2% over the last five years was superb and indicates its market share increased during this cycle
- Share buybacks catapulted its annual earnings per share growth to 104%, which outperformed its revenue gains over the last five years
- Strong free cash flow margin of 46.1% enables it to reinvest or return capital consistently
Halozyme Therapeutics is trading at $71.81 per share, or 9.2x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.