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.
EXL (EXLS)
One-Year Revenue Growth: +15.2%
Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ: EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.
Why Do We Love EXLS?
- Market share has increased this cycle as its 15.1% annual revenue growth over the last five years was exceptional
- Share buybacks catapulted its annual earnings per share growth to 25.5%, which outperformed its revenue gains over the last five years
- Robust free cash flow margin of 11.5% gives it many options for capital deployment
At $44.14 per share, EXL trades at 22.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
StepStone Group (STEP)
One-Year Revenue Growth: +21.6%
Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ: STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.
Why Are We Backing STEP?
- Impressive 32.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 33.8% annually
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
StepStone Group’s stock price of $62.65 implies a valuation ratio of 31.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
RenaissanceRe (RNR)
One-Year Revenue Growth: +23.2%
Born in Bermuda after the devastating Hurricane Andrew created a crisis in the catastrophe insurance market, RenaissanceRe (NYSE: RNR) provides property, casualty, and specialty reinsurance and insurance solutions to customers worldwide, primarily through intermediaries.
Why Will RNR Outperform?
- Strong 22.2% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 39.2% over the last two years outstripped its revenue performance
- Balance sheet strength has increased this cycle as its 27.8% annual book value per share growth over the last two years was exceptional
RenaissanceRe is trading at $244.34 per share, or 1.2x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. 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 Comfort Systems (+782% 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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