Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. On that note, here are three growth stocks with significant upside potential.
Alignment Healthcare (ALHC)
One-Year Revenue Growth: +49.5%
Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ:ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.
Why Do We Love ALHC?
- Business is winning new contracts that can potentially increase in value as its customer base averaged 40.2% growth over the past two years
- Earnings growth has trumped its peers over the last four years as its EPS has compounded at 45.5% annually
- Free cash flow profile has reached break even, indicating the company has achieved financial self-sustainability
Alignment Healthcare is trading at $15.80 per share, or 43.2x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
LPL Financial (LPLA)
One-Year Revenue Growth: +29.1%
As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ:LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
Why Are We Backing LPLA?
- Market share has increased this cycle as its 22.6% annual revenue growth over the last two years was exceptional
- Incremental sales over the last five years have been more profitable as its earnings per share increased by 21.3% annually, topping its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $361.24 per share, LPL Financial trades at 17.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Skyward Specialty Insurance (SKWD)
One-Year Revenue Growth: +21.7%
Founded in 2006 to serve markets where standard insurance coverage falls short, Skyward Specialty Insurance (NASDAQ:SKWD) provides customized commercial property, casualty, and health insurance solutions for underserved or specialized market niches.
Why Is SKWD a Good Business?
- Strong 28.2% annualized net premiums earned expansion over the last two years shows it’s capturing 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 46.9% outpaced its revenue gains
- Annual book value per share growth of 26.6% over the last two years was superb and indicates its capital strength increased during this cycle
Skyward Specialty Insurance’s stock price of $48.46 implies a valuation ratio of 2.2x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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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