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Three high-growth companies with strong fundamentals and expansion plans that could deliver impressive returns in the coming years.
If you’re looking to supercharge your investment portfolio, growth stocks can be a game-changer. The right stocks have the potential to generate impressive returns over the years, helping to build long-term wealth. However, not all growth stocks are created equal—some may experience slow share price growth despite strong business fundamentals.
The key to finding winning growth stocks is to look for companies with consistent revenue and profit growth, a clear expansion strategy, and a large market opportunity. With that in mind, here are three growth stocks that have the potential to take off in 2025 and beyond.
1. Wingstop: Expanding Its Empire One Wing at a Time
Wingstop (NASDAQ: WING) is a fast-growing restaurant chain specializing in chicken wings and tenders. With more than 2,200 locations worldwide, the company has built a loyal fan base and continues to expand aggressively.
In recent years, Wingstop has delivered impressive financial results:
- From 2021 to 2023, free cash flow nearly quadrupled from $20.9 million to $80.8 million.
- The number of restaurants grew from 1,731 to 2,214 during the same period.
- The company has consistently increased its dividend, from $0.14 per share in early 2021 to $0.27 in 2024.
Wingstop’s strong growth continued into 2024, with revenue surging 36% year over year to $625.8 million and net income jumping 55% to $108.7 million. The company also added 349 new locations in 2024, and management has ambitious plans to expand to more than 7,000 restaurants globally.
Despite its strong performance, Wingstop’s stock price has declined by nearly 18% in the past year (as of February 2025), which could present a buying opportunity for long-term investors. With a clear path to expansion and increasing profitability, Wingstop could be a major winner in the years ahead.
2. Deckers Outdoor: A Footwear Giant With Room to Run
Deckers Outdoor (NYSE: DECK) is the company behind popular footwear brands like UGG, Hoka, and Teva. Over the past few years, Deckers has demonstrated consistent financial growth:
- Free cash flow skyrocketed from $121.3 million in 2022 to $943.8 million in 2024.
- Revenue increased 19% year over year to $3.96 billion in the first nine months of fiscal 2025.
- Net income surged nearly 29% to $814.7 million during the same period.
The company is seeing strong international demand for its UGG and Hoka brands, helping it achieve record revenue and improved profit margins. Management expects revenue to rise by around 15% in fiscal 2025, with earnings per share projected to grow nearly 19% year over year.
Deckers also continues to launch innovative new products, such as the Bondi 9 running shoe from Hoka, which could drive further sales growth. With its strong brand portfolio and solid financial performance, Deckers is well-positioned to continue growing in the years to come.
3. Braze: AI-Powered Customer Engagement for the Future
Braze (NASDAQ: BRZE) is a leading customer engagement platform that helps businesses connect with their target audiences using data and artificial intelligence. The company has been delivering impressive revenue growth while improving profitability:
- Revenue increased by 27% year over year to $433 million in the first nine months of fiscal 2025.
- The company posted its first positive free cash flow of $4.4 million, a major turnaround from previous years.
- Large customer accounts (generating over $500,000 in annual recurring revenue) grew by 24% year over year.
Braze is also capitalizing on the growing demand for AI-driven marketing solutions. Its AI-powered BrazeAI platform, launched in 2023, has continued to evolve with new capabilities, such as an AI agent for optimization and personalization.
With a total addressable market expected to reach $30 billion by 2028, Braze has a significant runway for growth. Its ability to help businesses engage customers in real-time puts it in a strong position to benefit from the ongoing digital transformation.
Final Thoughts
Wingstop, Deckers Outdoor, and Braze all have the potential to generate strong long-term returns for investors. Each company is growing revenue and profits consistently while expanding into new markets. While stock prices may fluctuate in the short term, their strong business fundamentals make them promising candidates for long-term growth.
