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. That said, here are three growth stocks expanding their competitive advantages.
ESCO (ESE)
One-Year Revenue Growth: +27%
A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO (NYSE:ESE) is a provider of engineered components for the aerospace, defense, and utility sectors.
Why Will ESE Outperform?
- Impressive 15.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 42.6% outpaced its revenue gains
- Free cash flow margin grew by 9.3 percentage points over the last five years, giving the company more chips to play with
At $258.57 per share, ESCO trades at 29.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Incyte (INCY)
One-Year Revenue Growth: +26.9%
Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.
Why Is INCY a Good Business?
- Impressive 22.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Free cash flow margin grew by 12.6 percentage points over the last five years, giving the company more chips to play with
- Rising returns on capital show management is finding more attractive investment opportunities
Incyte’s stock price of $127.00 implies a valuation ratio of 51.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
ePlus (PLUS)
One-Year Revenue Growth: +16.5%
Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ:PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.
Why Do We Like PLUS?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 8.5% annual sales growth over the last five years
- Free cash flow margin increased by 6.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
ePlus is trading at $92.44 per share, or 16.7x 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
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.