We recently published a list of 12 High Growth Low Debt Stocks to Invest in Now. In this article, we are going to take a look at where QuinStreet, Inc. (NASDAQ:QNST) stands against other high growth low debt stocks to invest in now.

The global financial markets are experiencing heightened volatility, influenced by a confluence of economic and geopolitical factors. The broader market has entered correction territory, reflecting investor apprehension regarding escalating trade tensions and potential economic slowdowns. ​

The recent imposition of tariffs by the United States has been a significant catalyst for market fluctuations. In response, major indices such as the broader market and Nasdaq Composite have experienced notable declines. This environment has led to a reassessment of investment strategies, with a growing emphasis on asset quality and financial resilience.​

While debt can be a useful tool for fueling growth, excessive debt levels can pose significant risks. High debt-to-equity (D/E) ratios indicate that a company is heavily reliant on borrowed funds, which can lead to financial strain, especially during economic downturns. Companies with D/E ratios exceeding 2.0 are generally considered risky, as they may face challenges in meeting their debt obligations, potentially leading to insolvency. ​

Conversely, companies with low debt levels enjoy several advantages. They have greater financial stability, as they are less burdened by interest payments and have a reduced risk of bankruptcy. This financial flexibility allows them to invest more in growth opportunities, such as research and development, marketing, or capital expenditures, without the constraints of significant debt obligations. Moreover, these companies are often more attractive to investors, as they present a lower risk profile.

Investing in High-Growth, Low-Debt Stocks

In the current climate, focusing on high-growth companies with low debt levels can be a prudent strategy. These companies typically exhibit robust earnings growth and the ability to navigate economic headwinds effectively. Financial advisors are also increasingly recommending investments in quality stocks characterized by strong earnings, low debt, and reliable management. This approach focuses on identifying firms that are expanding without overleveraging, thereby maintaining financial stability and operational flexibility.​

The Appeal of High Growth

High-growth companies are characterized by their ability to increase revenues and earnings at a rate significantly above the market average. This rapid expansion often leads to substantial capital appreciation for investors. For instance, companies with low debt have historically outperformed their high-debt counterparts. Over a 23-year period, low-debt growth companies achieved annualized returns of 17.1%, compared to just 7.5% for high-debt firms. Notably, low-debt stocks outperformed high-debt stocks in 19 of those 23 years, equating to an 83% beat rate. ​Given this, we will take a look at some of the best high growth stocks with low debt.

Our Methodology

To identify high-growth, low-debt stocks, we screened for companies with strong competitive advantages and an estimated average annual EPS growth rate of over 15% for the next five years, based on data from FINVIZ.com. Additionally, we filtered for companies with a debt-to-equity ratio below 0.5. The EPS Next 5 Year growth rate was used as the primary ranking metric. The final list of stocks is ranked in ascending order of EPS growth rate, prioritizing companies with the strongest earnings expansion potential.

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QuinStreet, Inc. (NASDAQ:QNST)

EPS Growth Rate (Next 5 Years): 143.85%

QuinStreet, Inc. (NASDAQ:QNST) is a digital performance marketing company specializing in customer acquisition for the financial services and home services industries.

QuinStreet, Inc. (NASDAQ:QNST) participated in Susquehanna’s 14th Annual Technology Conference on February 27, 2025, in New York, reinforcing its commitment to engaging with investors and showcasing its market momentum and business strategy. As a leader in performance marketplaces for financial services and home services, QuinStreet continues to drive customer acquisition.

QuinStreet, Inc. (NASDAQ:QNST) reported record Q2 FY2025 revenue of $283 million, marking a 130% YoY increase, driven by a 615% surge in auto insurance revenue and 15% growth in non-insurance verticals. Despite a GAAP net loss of $1.5 million, adjusted net income reached $11.9 million, reflecting strong operational improvements. Adjusted EBITDA came in at $19.4 million, reinforcing profitability momentum.

Overall, QNST ranks 6th on our list of high growth low debt stocks to invest in now. While we acknowledge the potential for QNST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QNST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.