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.
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. Keeping that in mind, here are three growth stocks expanding their competitive advantages.
The Trade Desk (TTD)
One-Year Revenue Growth: +15.5%
Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ: TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.
Why Are We Fans of TTD?
- Annual revenue growth of 20.2% over the past two years was outstanding, reflecting market share gains
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Healthy operating margin of 20.3% shows it’s a well-run company with efficient processes, and its operating leverage amplified its profits over the last year
The Trade Desk’s stock price of $19.55 implies a valuation ratio of 2.9x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
SoFi (SOFI)
One-Year Revenue Growth: +39.8%
Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ: SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.
Why Will SOFI Outperform?
- Impressive 33.4% 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 396% outpaced its revenue gains
At $18.79 per share, SoFi trades at 28.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Guidewire Software (GWRE)
One-Year Revenue Growth: +24.9%
With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE: GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.
What Makes GWRE Stand Out?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 20.6% over the last year
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 8.2%, and its profits increased over the last year as it scaled
Guidewire Software is trading at $136.96 per share, or 7x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
