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. That said, here are two growth stocks with significant upside potential and one whose momentum may slow.
One-Year Revenue Growth: +54.1%
Tracing its roots back to 1902 when it first opened its doors in Virginia, Atlantic Union Bankshares (NYSE:AUB) is a full-service regional bank providing commercial and retail banking, wealth management, and insurance services throughout Virginia and parts of Maryland and North Carolina.
Why Do We Think Twice About AUB?
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Flat tangible book value per share over the last five years suggest it must find different ways to enhance shareholder value during this cycle
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Projected tangible book value per share growth of 7.3% for the next 12 months suggests sluggish capital generation
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Low tier one capital ratio of 9.8% indicates the company may struggle to maintain adequate liquidity during periods of economic stress
At $31.42 per share, Atlantic Union Bankshares trades at 0.9x forward P/B. To fully understand why you should be careful with AUB, check out our full research report (it’s free for active Edge members).
One-Year Revenue Growth: +28.1%
With a massive network spanning more than 310 cities in over 120 countries, Cloudflare (NYSE:NET) provides a global network that delivers security, performance and reliability services to protect websites, applications, and corporate networks.
Why Do We Love NET?
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Billings have averaged 34.2% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
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Expected revenue growth of 27.5% for the next year suggests its market share will rise
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Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
Cloudflare’s stock price of $202.02 implies a valuation ratio of 26.7x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
One-Year Revenue Growth: +29.9%
With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.