For those aiming to elevate their investment portfolios, growth stocks can offer transformative potential. The right selections may provide substantial returns over time, contributing to the accumulation of long-term wealth. However, it’s essential to recognize that not all growth stocks perform alike; some may see gradual price increases even with robust business fundamentals.
Discovering successful growth stocks involves seeking companies that exhibit consistent revenue and profit increases, have a defined expansion plan, and operate in a large market. Keeping this in mind, here are three growth stocks that show considerable potential for growth in 2025 and beyond.
1. Wingstop: Growing Its Empire One Wing at a Time
Wingstop (NASDAQ: WING) is a rapidly growing restaurant chain focusing on chicken wings and tenders. With over 2,200 locations globally, the brand has built a dedicated customer base and continues to pursue aggressive expansion.
In recent years, Wingstop has achieved impressive financial results:
- Free cash flow soared from $20.9 million in 2021 to $80.8 million in 2023.
- The total number of restaurants increased from 1,731 to 2,214 during that timeframe.
- The company has incrementally boosted its dividend, raising it from $0.14 per share at the beginning of 2021 to $0.27 in 2024.
Wingstop maintained its growth trajectory into 2024, with revenue climbing 36% year over year to $625.8 million and net income rising 55% to $108.7 million. Additionally, the company opened 349 new locations in 2024, with management aiming to expand to more than 7,000 restaurants worldwide.
Despite its strong performance, Wingstop’s stock has seen a nearly 18% drop over the past year (as of February 2025), potentially presenting a buying opportunity for long-term investors. With a clear growth strategy and rising profitability, Wingstop could prove to be a significant winner in the future.
2. Deckers Outdoor: A Footwear Powerhouse With Ample Growth Potential
Deckers Outdoor (NYSE: DECK) is the owner of renowned footwear brands, including UGG, Hoka, and Teva. Over the last several years, the company has shown consistent financial growth:
- Free cash flow soared from $121.3 million in 2022 to $943.8 million in 2024.
- Revenue jumped 19% year-over-year to $3.96 billion during the first three quarters of fiscal 2025.
- Net income increased nearly 29% to $814.7 million over the same period.
The company is witnessing robust international demand for its UGG and Hoka brands, leading to record revenues and enhanced profit margins. Management anticipates revenue to grow approximately 15% in fiscal 2025, with earnings per share expected to rise nearly 19% year over year.
Deckers is also actively releasing innovative new products, such as Hoka’s Bondi 9 running shoe, which may further boost sales. Given its strong brand portfolio and solid financial performance, Deckers appears well-equipped for sustained growth in the upcoming years.
3. Braze: AI-Driven Customer Engagement for Tomorrow
Braze (NASDAQ: BRZE) is a premier customer engagement platform that assists businesses in connecting with their audiences through the use of data and artificial intelligence. The company has been showcasing substantial revenue growth while enhancing profitability:
- Revenue grew by 27% year-over-year to $433 million in the first nine months of fiscal 2025.
- The firm generated its first positive free cash flow of $4.4 million, marking a significant reversal from previous years.
- The number of large customer accounts (those producing over $500,000 in annual recurring revenue) increased by 24% year over year.
Braze is also taking advantage of the rising demand for AI-based marketing solutions. Its AI-powered BrazeAI platform, introduced in 2023, continues to adapt with new features, including an AI agent focusing on optimization and personalization.
With a total addressable market expected to reach $30 billion by 2028, Braze enjoys a substantial growth potential. Its capacity to assist businesses in real-time customer engagement positions it favorably amid the ongoing digital transformation.
Wingstop, Deckers Outdoor, and Braze present significant potential for generating robust long-term returns for investors. Each company exhibits steady revenue and profit growth while exploring new market opportunities. Although stock prices may fluctuate in the short term, their strong operational foundations make them attractive prospects for long-term growth.
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