High Growth Stocks
Stocks with revenue growth over 20% - screened for growth investors seeking fast-growing companies with strong momentum and market expansion.
Average Growth
44%
Highest Growth
122%
Hypergrowth (>40%)
8
Avg PEG Ratio
1.7
Why Invest in High Growth Stocks?
Capital Appreciation
Growth stocks aim to multiply your investment through stock price appreciation as the company expands. A company doubling revenue often sees stock price follow.
Market Leaders
Fast-growing companies often lead their industries, benefiting from network effects, economies of scale, and competitive moats that compound over time.
Innovation Exposure
High growth stocks provide exposure to transformative trends like AI, cloud computing, cybersecurity, and biotech that are reshaping the global economy.
Top High Growth Stocks
| # | Ticker | Company | Sector | Revenue Growth | Earnings Growth | PEG Ratio | Market Cap |
|---|---|---|---|---|---|---|---|
| 1 | NVDA | NVIDIA Corporation | Technology | 122% | 168% | 1.2 | $3.48T |
| 2 | SMCI | Super Micro Computer | Technology | 110% | 185% | 0.8 | $20B |
| 3 | CELH | Celsius Holdings | Consumer Staples | 65% | 110% | 1.5 | $12B |
| 4 | CAVA | CAVA Group | Consumer Discretionary | 52% | N/P | --- | $14B |
| 5 | ARM | Arm Holdings | Technology | 46% | 78% | 2.8 | $140B |
| 6 | DUOL | Duolingo Inc. | Technology | 45% | 320% | 1.4 | $15B |
| 7 | APP | AppLovin Corporation | Technology | 44% | 280% | 1.1 | $95B |
| 8 | MELI | MercadoLibre | Consumer Discretionary | 42% | 95% | 1.3 | $100B |
| 9 | SNOW | Snowflake Inc. | Technology | 36% | N/P | --- | $52B |
| 10 | LLY | Eli Lilly | Healthcare | 36% | 95% | 1.8 | $780B |
| 11 | ZS | Zscaler Inc. | Technology | 34% | 120% | 2.2 | $33B |
| 12 | AXON | Axon Enterprise | Industrials | 34% | 78% | 2.0 | $38B |
| 13 | CRWD | CrowdStrike Holdings | Technology | 33% | 95% | 2.4 | $85B |
| 14 | NET | Cloudflare Inc. | Technology | 30% | N/P | --- | $38B |
| 15 | ANET | Arista Networks | Technology | 28% | 45% | 1.6 | $120B |
| 16 | PLTR | Palantir Technologies | Technology | 27% | 180% | 2.1 | $145B |
| 17 | DDOG | Datadog Inc. | Technology | 26% | 112% | 1.8 | $52B |
| 18 | TTD | The Trade Desk | Technology | 26% | 52% | 1.9 | $60B |
| 19 | PANW | Palo Alto Networks | Technology | 24% | 85% | 1.5 | $125B |
| 20 | META | Meta Platforms | Technology | 22% | 73% | 1.1 | $1.58T |
Growth Rate Categories
Hypergrowth (>100%)
Explosive growth, often in early-stage or disruptive companies. High risk/reward.
Rapid (40-100%)
Very fast growth indicating strong product-market fit and scaling operations.
Strong (25-40%)
Above-average growth with proven business models and sustainable expansion.
Growth (20-25%)
Solid growth beating market averages. Often larger, more mature companies.
The Rule of 40
A key metric for evaluating growth stocks, especially software/SaaS companies. The Rule of 40 states that a healthy company's growth rate plus profit margin should exceed 40%.
50% + 10%
Hypergrowth with profit = 60
Excellent
35% + 5%
Strong growth, thin margin = 40
Passing
25% + 10%
Moderate both = 35
Watch for improvement
Our Screening Criteria
Revenue Growth > 20%
We screen for companies with year-over-year revenue growth exceeding 20%, which is approximately 3-4x the S&P 500 average growth rate. This threshold identifies companies with strong momentum and market expansion.
Quality Considerations
Growth should be evaluated alongside quality metrics: improving gross margins, sustainable unit economics, reasonable valuation (PEG ratio), and competitive moats. Revenue growth alone does not guarantee investment success.
Growth Investing Risks
High growth stocks offer significant upside but carry elevated risks:
- • Valuation compression: P/E multiples contract if growth slows
- • Execution risk: Scaling operations is difficult
- • Competition: High margins attract competitors
- • Interest rate sensitivity: Growth stocks fall when rates rise
- • Burn rate: Unprofitable companies can run out of cash
- • Management dilution: Stock compensation dilutes shareholders
- • Binary outcomes: Some growth bets go to zero
- • Market volatility: Growth stocks swing wildly in corrections
Frequently Asked Questions
What is considered a high growth stock?▼
A high growth stock is a company growing revenue at 20% or more annually, significantly faster than the S&P 500 average of 5-7%. Hypergrowth stocks grow at 40%+ annually. Growth stocks typically trade at higher valuations (P/E, P/S) because investors pay a premium for rapid expansion and future earnings potential.
How do you identify high growth stocks?▼
Identify high growth stocks by analyzing: 1) Revenue growth rate (YoY and multi-year CAGR), 2) Earnings growth and improving margins, 3) Total addressable market (TAM) size, 4) Competitive moats and market position, 5) Customer acquisition and retention metrics, 6) Management quality and capital allocation. Combine quantitative screening with qualitative analysis.
Are high growth stocks risky?▼
Yes, high growth stocks carry higher risk than value stocks. Risks include: valuation compression if growth slows, execution risk in scaling operations, competition eroding margins, macroeconomic sensitivity (growth stocks fall more when rates rise), and binary outcomes for unprofitable companies. The potential reward is significant capital appreciation if growth continues.
What is the PEG ratio and why does it matter for growth stocks?▼
The PEG ratio (Price/Earnings to Growth) adjusts P/E for growth rate: PEG = P/E Ratio / Earnings Growth Rate. A PEG of 1.0 means the P/E equals the growth rate (fairly valued for growth). PEG below 1.0 may indicate undervaluation relative to growth. PEG above 2.0 suggests premium valuation even accounting for growth. Use PEG to compare growth stocks.
Should I invest in unprofitable growth stocks?▼
Unprofitable growth stocks can be appropriate for risk-tolerant investors with long time horizons. Evaluate: 1) Path to profitability - is gross margin high enough to eventually be profitable?, 2) Cash burn rate vs cash on hand, 3) Unit economics - is each customer profitable?, 4) Revenue quality and recurring nature. Many great companies (Amazon, Tesla) were unprofitable during hypergrowth phases.
What sectors have the most high growth stocks?▼
Technology consistently produces the most high-growth stocks due to scalability and low marginal costs. Other high-growth sectors include: Healthcare/Biotech (drug approvals, GLP-1 treatments), Consumer Discretionary (e-commerce, EV), Cybersecurity, Cloud Computing, AI/ML, and select Consumer Staples (energy drinks, health foods). Sector leadership rotates with innovation cycles.
How do I value a high growth stock?▼
Traditional P/E ratios often do not work for growth stocks. Use: 1) PEG ratio for profitable growers, 2) Price-to-Sales (P/S) for unprofitable companies, 3) EV/Revenue for SaaS businesses, 4) DCF with terminal growth assumptions, 5) Rule of 40 (growth rate + profit margin > 40%) for software, 6) Comparable analysis to similar growth companies. Consider the total addressable market ceiling.
What is the Rule of 40?▼
The Rule of 40 states that a healthy software/SaaS company's revenue growth rate plus profit margin should exceed 40%. For example: 30% growth + 15% margin = 45% (passing). A company growing 50% with -5% margin = 45% (still passing). This balances growth and profitability, helping identify companies making smart tradeoffs between expansion and efficiency.
Related Stock Screeners
Analyze Growth Stocks with AI
Go beyond revenue growth. Our AI analyzes total addressable market, competitive positioning, unit economics, and management quality to identify the best growth opportunities.