3 Growth Stocks to Stash

3 Growth Stocks to Stash

Kayode Omotosho

Fri, February 20, 2026 at 1:32 PM GMT+9 3 min read

In this article:

•                                       StockStory Top Pick 
  

  PAY

  +0.16%

  KLAC

  -0.70%

 CDNS  

 -2.76%  

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.

Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. On that note, here are three growth stocks where the best is yet to come.

KLA Corporation (KLAC)

One-Year Revenue Growth: +17.5%

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.

Why Are We Backing KLAC?

Impressive 16% annual revenue growth over the last five years indicates it’s winning market share this cycle

Superior product capabilities and pricing power are reflected in its best-in-class gross margin of 60.7%

Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute

KLA Corporation is trading at $1,471 per share, or 36x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Cadence Design Systems (CDNS)

One-Year Revenue Growth: +14.1%

Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ:CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.

Why Should CDNS Be on Your Watchlist?

Prominent and differentiated software leads to a best-in-class gross margin of 87.4%

Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently

CDNS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Cadence Design Systems’s stock price of $296.85 implies a valuation ratio of 13.9x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Paymentus (PAY)

One-Year Revenue Growth: +44.3%

Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE:PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.

Why Is PAY a Top Pick?

Market share has increased this cycle as its 39% annual revenue growth over the last two years was exceptional

Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 86.3% outpaced its revenue gains

 






Story Continues  

At $24.44 per share, Paymentus trades at 34.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

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