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.

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. On that note, here are three growth stocks where the best is yet to come.

Impinj (PI)

1-Year Revenue Growth: +19%

Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software.

Why Are We Positive On PI?

1. Annual revenue growth of 19.2% over the past two years was outstanding, reflecting market share gains this cycle
2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 125% annually, topping its revenue gains
3. Free cash flow margin increased by 44.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Impinj’s stock price of $91 implies a valuation ratio of 32.4x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.

Parsons (PSN)

1-Year Revenue Growth: +24%

Delivering aerospace technology during the Cold War-era, Parsons (NYSE:PSN) offers engineering, construction, and cybersecurity solutions for the infrastructure and defense sectors.

Why Do We Like PSN?

1. Annual revenue growth of 26.8% over the past two years was outstanding, reflecting market share gains this cycle
2. Share buybacks catapulted its annual earnings per share growth to 34.5%, which outperformed its revenue gains over the last two years
3. Historical investments are beginning to pay off as its returns on capital are growing

Parsons is trading at $58.01 per share, or 14.5x forward price-to-earnings. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

IonQ (IONQ)

1-Year Revenue Growth: +95.4%

Born from groundbreaking research at the University of Maryland and Duke University, IonQ (NYSE:IONQ) develops quantum computers that process information using trapped ions to solve complex problems beyond the capabilities of traditional computers.

Why Are We Fans of IONQ?

1. Annual revenue growth of 96.7% over the last two years was superb and indicates its market share increased during this cycle
2. Market share is on track to rise over the next 12 months as its 98.5% projected revenue growth implies demand will accelerate from its two-year trend
3. Adjusted operating profits increased over the last four years as the company gained some leverage on its fixed costs and became more efficient

At $23.09 per share, IonQ trades at 56.9x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Put yourself in the driver’s seat by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.