Investors seeking maximum returns should concentrate on growth stocks. These firms often deliver high revenue growth. Some of these companies are profitable while others are narrowing their losses. Some growth stocks can generate more gains in 1-3 years than most indexes accumulate within a decade.

Growth powerhouse stocks can generate those types of gains, but not every growth stock is a winner. Furthermore, some growth stocks are enticing for 1-3 years and then fizzle out after they stop growing. Investors have to consider several factors before investing in growth stocks, but these stock picks can offer good starting points.

Sterling Infrastructure (STRL)

Most of the growth powerhouses are in the tech sector due to the industry’s ability to scale quickly. However, diversifying your portfolio with non-tech stocks can mitigate risk.

Sterling Infrastructure (NASDAQ:STRL) offers infrastructure services and has amassed a $2 billion market cap. The little-known infrastructure stock has silently gained 466% over the past five years. Shares have gained 133% over the past year.

The infrastructure firm has an 18 P/E ratio and is expanding its net profit margins. The company reported $560 million in revenue during the third quarter of 2023 and a net income of $39.4 million. These numbers represent growth rates of 13.7% and 33.3% respectively.

Sterling Infrastructure offers solutions in building, transportation, and e-infrastructure. E-infrastructure is the fastest-growing segment and represents business generated by companies seeking to build data centers, e-commerce distribution centers, commercial warehousing, energy, and next-gen manufacturing. 

Essentially, the fast-growing e-infrastructure segment represents business from large tech companies. This business segment closed the third quarter with an $891 million backlog. It represents a 48% increase from year-end 2022 levels.

Perion (PERI)

Perion (NASDAQ:PERI) is a small advertising company with a market cap under $1.5 billion and a 12 P/E ratio. Shares have gained close to 800% over the past five years but have dropped by 10% over the past year.

Despite the lower stock price, Perion has continued to deliver high revenue and earnings growth. The company achieved 17% year-over-year revenue growth in the third quarter and increased its net income by 28% year-over-year. 

Bears may point to a contract with Microsoft (NASDAQ:MSFT) that is set to expire in 2024. Perion’s partnership with Bing is attributed to roughly 45% of its total revenue. However, the two corporations have been in a partnership since 2010, and it’s likely that the partnership will get extended. Perion’s team feels confident that the contract will get extended.

Perion is valued as if the partnership has already fallen through. An announcement extending the partnership will likely send shares soaring. Furthermore, the company has exposure to several high-growth advertising segments such as connected TV. While Microsoft makes up a large percentage of Perion’s revenue, the firm has been diversifying its revenue streams.

Axcelis Technologies (ACLS)

Axcelis Technologies (NASDAQ:ACLS) offers wafers that help chipmakers create more effective chips. The company has an integral place in the chipmaking process and has soared by 557% over the past five years.

However, the gains haven’t arrived lately. The stock has been in free fall since August and is down by over 30% from its all-time high. However, investors have been loading up on the dip which has resulted in a 5% year-to-date gain. That includes a 15% rally in a single week that started on January 16th. 

Axcelis Technologies trades at a 19 P/E ratio and has a $4.3 billion market cap. The firm can likely continue to grow based on P/E multiple expansion. However, things are looking up for the semiconductor industry and can result in more gains for ACLS.

Axcelis Technologies has been posting solid financials even with the headwinds. In the third quarter of 2023, the firm generated $292.3 million in revenue and $65.9 million in net income. Those numbers represent 27.6% and 63.7% year-over-year growth respectively. The company isn’t slowing down and has a reasonable valuation relative to its financials and industry tailwinds.

Stride (LRN)

Stride (NYSE:LRN) is an educational management platform that has soared by 93% over the past year. The company’s profit margin is expanding on the back of revenue and earnings growth. 

The firm recently achieved a revenue milestone and reached $480.2 million in the process. It’s a 13% year-over-year increase. Stride’s leadership also expects the company’s earnings per share to more than double by 2028.

The company is experiencing its largest growth among middle schoolers and high schoolers. The company reported a 20.3% year-over-year growth rate in this segment. 

Stride aims to generate revenue in the range of $1.96 billion to $2.03 billion in fiscal year 2024. The midpoint represents a 9% year-over-year growth rate compared to fiscal year 2023. 

Online education is becoming more realistic as a path to a successful career. Stride is one of the companies leading that charge. Stride students resisted the “learning loss” trend associated with the pandemic. As students and families look for more affordable and convenient education choices, Stride may continue to grow.

Supermicro (SMCI)

Supermicro (NASDAQ:SMCI) is a rapidly growing company that is at the center of the artificial intelligence boom. Just like Nvidia (NASDAQ:NVDA) did last year, Supermicro released updated guidance that reflects significant growth. 

Leadership now expects the company to generate $3.6-$3.65 million in revenue. That’s a significant jump from the prior guidance which ranged from $2.7-$2.9 billion in revenue. The midpoints represent a 29.5% increase in guidance. The company will double its revenue from the same period last year if it achieves the new guidance.

Supermicro offers servers and storage systems that are built to handle the intense workload of artificial intelligence. These servers have gained significant traction. Supermicro has the potential to exceed its new guidance while setting sky-high guidance for the following quarter.

The stock has delivered exceptional gains for investors. Shares are up by 53% year-to-date, 494% over the past year, and 2,830% over the past five years. There is a lot of excitement around this stock as investors anticipate a large runway over the next few years.

Zscaler (ZS)

Zscaler (NASDAQ:ZS) is a security cloud platform company that protects valuable data points from hackers. More businesses are investing in Zscaler and other cybersecurity firms as cyber attacks continue to increase.

Zscaler isn’t profitable yet but has been narrowing its losses. In the meantime, the corporation continues to deliver compelling top-line growth. Zscaler has 7,700 customers including 468 customers who each generate over $1 million in annual recurring revenue for the firm.

Zscaler started the first quarter of fiscal 2024 on a high note with 40% year-over-year revenue growth. Billings went up by 34% year-over-year which indicates the business is still growing. GAAP net losses were cut in half year-over-year.

Guidance for the second quarter suggests $505-$507 million in revenue. The midpoint represents 30.5% year-over-year growth. The firm is also aiming for $2.09-$2.10 billion in revenue for the entire fiscal year. The midpoint represents a 29.6% year-over-year growth rate compared to fiscal 2023.

Crowdstrike (CRWD)

Crowdstrike (NASDAQ:CRWD) is another high-flying cybersecurity stock that has rewarded investors. Shares have gained 180% over the past year and are up by 364% over the past five years.

The firm recently became profitable, and net profit margins should rapidly expand. The third quarter of fiscal 2024 continued this trend. Revenue jumped by 35% year-over-year on the back of a lucrative business subscription model. Most businesses won’t cancel their cybersecurity software because doing so can leave them vulnerable to hackers. 

While Crowdstrike has always delivered high revenue growth, its net income growth is a pleasant surprise for investors. The cybersecurity leader posted $26.7 million in GAAP net income compared to a $55.0 million GAAP net loss in the same period last year.

Crowdstrike’s Falcon platform remains a big hit, and the company has been using artificial intelligence to strengthen its offerings. The firm helps businesses keep their information secure from hackers and respond to attacks faster.

On this date of publication, Marc Guberti held long positions in PERI, ACLS, and SMCI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.