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.
The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. On that note, here are three growth stocks expanding their competitive advantages.
Axon (AXON)
One-Year Revenue Growth: +34%
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Will AXON Beat the Market?
- Offerings are pivotal for their customers' operations as its ARR has averaged 37.6% growth over the past two years
- Operating margin expanded by 10.1 percentage points over the last five years as it scaled and became more efficient
- Earnings per share have massively outperformed its peers over the last two years, increasing by 26.6% annually
Axon’s stock price of $392.45 implies a valuation ratio of 46.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
CBIZ (CBZ)
One-Year Revenue Growth: +28.3%
With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE: CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations.
Why Will CBZ Outperform?
- Impressive 30.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings per share grew by 22.9% annually over the last two years and trumped its peers
- Free cash flow margin of 7% over the last five years means it can fund investments internally, mitigating its dependence on capital markets, and its rising cash conversion increases its margin of safety
CBIZ is trading at $28.91 per share, or 6.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Paymentus (PAY)
One-Year Revenue Growth: +33%
Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE: PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.
Why Do We Love PAY?
- Market share has increased this cycle as its 40.2% annual revenue growth over the last two years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 51% annually, topping its revenue gains
At $24.28 per share, Paymentus trades at 29.1x 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
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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.
