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.
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.
VSE Corporation (VSEC)
One-Year Revenue Growth: +22.2%
With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ:VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.
Why Do We Watch VSEC?
- Annual revenue growth of 22.5% over the last two years was superb and indicates its market share increased during this cycle
- Operating margin expanded by 5.4 percentage points over the last five years as it scaled and became more efficient
- Incremental sales over the last five years have been more profitable as its earnings per share increased by 14.2% annually, topping its revenue gains
At $168.66 per share, VSE Corporation trades at 43.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Reddit (RDDT)
One-Year Revenue Growth: +70%
Founded in 2005 by two University of Virginia roommates, Reddit (NYSE:RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.
Why Is RDDT a Good Business?
- Domestic Daily Active Visitors have grown by 33.7% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Earnings per share grew by 38.6% annually over the last three years and trumped its peers
- Free cash flow margin grew by 35.1 percentage points over the last few years, giving the company more chips to play with
Reddit’s stock price of $260.73 implies a valuation ratio of 68x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Cigna (CI)
One-Year Revenue Growth: +20.2%
With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE:CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.
Why Could CI Be a Winner?
- Market share has increased this cycle as its 18.7% annual revenue growth over the last two years was exceptional
- Dominant market position is represented by its $262 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
- Earnings growth was above the peer group average over the last five years as its EPS compounded at 7.7% annually
Cigna is trading at $305.87 per share, or 9.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
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