3 High-Margin Growth Stocks That Are Starting to Look Bulletproof Right Now

2 hours ago 4

Chris MacDonald

Tue, December 16, 2025 astatine 11:45 AM CST 5 min read

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With markets hovering astir all-time highs, present whitethorn beryllium a hard clip for immoderate maturation investors to measurement into circumstantial names. After all, valuations person surged to levels galore investors whitethorn simply beryllium uncomfortable with close now.

Alphabet generated $100B successful gross past 4th (up 16% year-over-year) with operating borderline expanding to astir 34%.
Nvidia maintains a gross borderline supra 73% with gross climbing 62% year-over-year and 22% quarter-over-quarter.
Microsoft’s intelligent unreality gross surged 28% year-over-year with wide margins reaching astir 69%.
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That said, determination are definite cardinal metrics maturation investors tin look astatine to guarantee their halfway holdings person the benignant of stableness and upside investors are looking for. Among the cardinal items I look astatine erstwhile I see companies' income statements and equilibrium sheets is however overmuch gross and nett borderline they're creating. That's due to the fact that these metrics are beauteous coagulated estimations of however good a fixed institution is operating. Indeed, astatine the extremity of the day, valuations travel down to however overmuch currency travel oregon net a fixed institution volition make implicit their remaining years successful operation.

So, let's instrumentality a look astatine 3 companies with sky-high margins I deliberation tin powerfulness done immoderate is to come.

Most readers volition cognize however bullish I've been on Alphabet (NASDAQ:GOOG) of late, successful portion owed to the company's comparatively debased valuation aggregate erstwhile compared to its Magnificent 7 peers.

At a mid-20s price-earnings ratio for a institution that generated $100 cardinal successful gross this past 4th (up 16% year-over-year), there's a batch to similar astir however Alphabet is priced comparative to its aboriginal maturation potential. Indeed, I'd reason that the company's top-line maturation fig astir apt gets disproportionate attraction from investors and the marketplace arsenic a whole, contempt the underlying world that these revenues are highly profitable.

In fact, the company's operating borderline has expanded implicit the past year, surging to astir 34% this past quarter. For a institution of Alphabet's size, with truthful overmuch scalability and upside from its burgeoning unreality concern (and sky-high margins continuing successful search), this is simply a banal worthy holding for the long-term. In my view, Alphabet's robust halfway businesses marque the AI oregon autonomous driving communicative astir this banal palatable, arsenic those are semipermanent bets. But fixed the awesome maturation we've seen with Waymo and Gemini, these are besides factors that shouldn't beryllium ignored.