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.
The risks that can come from buying these assets are precisely why we started StockStory — to isolate the long-term winners from the losers so you can invest with confidence. Keeping that in mind, here are three growth stocks expanding their competitive advantages.
AMD (AMD)
One-Year Revenue Growth: +39.5%
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 Could AMD Be a Winner?
- Annual revenue growth of 25.4% over the last five years was superb and indicates its market share increased during this cycle
- Exciting sales outlook for the upcoming 12 months calls for 66.3% growth, an acceleration from its two-year trend
- Earnings growth has comfortably beaten the peer group average over the last five years as its EPS has compounded at 22.6% annually
AMD is trading at $538.65 per share, or 47.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Howmet (HWM)
One-Year Revenue Growth: +18.1%
Inventing the first forged aluminum truck wheel, Howmet (NYSE: HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Why Should You Buy HWM?
- Impressive 13.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 42.8% exceeded its revenue gains over the last two years
- Free cash flow margin grew by 12.7 percentage points over the last five years, giving the company more chips to play with
Howmet’s stock price of $221.54 implies a valuation ratio of 37.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Allison Transmission (ALSN)
One-Year Revenue Growth: +37.6%
Helping build race cars at one point, Allison Transmission (NYSE: ALSN) offers transmissions to original equipment manufacturers and fleet operators.
Why Will ALSN Beat the Market?
- Impressive 18.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share repurchases over the last five years enabled its annual earnings per share growth of 17.7% to outpace its revenue gains
- Strong free cash flow margin of 19.2% enables it to reinvest or return capital consistently
At $110.72 per share, Allison Transmission trades at 10.2x 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
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
