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.
Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. That said, here are three growth stocks expanding their competitive advantages.
AMD (AMD)
One-Year Revenue Growth: +31.8%
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Is AMD a Good Business?
- Annual revenue growth of 29.9% over the last five years was superb and indicates its market share increased during this cycle
- Market share is on track to rise over the next 12 months as its 27.1% projected revenue growth implies demand will accelerate from its two-year trend
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 27.9% annually
AMD is trading at $206.21 per share, or 38x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Wingstop (WING)
One-Year Revenue Growth: +15.6%
The passion project of two chicken wing aficionados in Texas, Wingstop (NASDAQ:WING) is a popular fast-food chain known for its flavorful and crispy chicken wings offered in a variety of sauces and seasonings.
Why Do We Love WING?
- Average same-store sales growth of 11.9% over the past two years indicates its restaurants are resonating with diners
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 25.7%
- Robust free cash flow margin of 15.9% gives it many options for capital deployment
Wingstop’s stock price of $239.60 implies a valuation ratio of 53x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
AAR (AIR)
One-Year Revenue Growth: +17.6%
The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE:AIR) is a provider of aircraft maintenance services
Why Are We Positive On AIR?
- Annual revenue growth of 16.8% over the last two years was superb and indicates its market share increased during this cycle
- Estimated revenue growth of 12% for the next 12 months implies its momentum over the last two years will continue
- Earnings per share grew by 18.9% annually over the last five years and trumped its peers
At $82.70 per share, AAR trades at 18.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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-small-cap company Exlservice (+354% 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.