When you're searching for stocks that have a chance to beat the market, there are a few ways to go about it. First, you could look for value stocks that aren't trading where they should be. Second, you can purchase growth stocks that could be expensive now, but whose long-term growth should overcome their high prices and power their stocks higher.

Three stocks I think can beat the market today using the growth philosophy are Cloudflare (NET 0.23%), Twilio (NET 0.23%), and Adyen (ADYEN 2.64%). Read on to find out why (and how) these stocks are primed to do it.


When you want to host a website, you can purchase the networking equipment and do it yourself. The problem is that you're responsible for maintaining the site, dealing with threats, and ensuring everything runs smoothly. Another option is to outsource all of that to Cloudflare.

When you utilize Cloudflare, you place code in data centers located in more than 275 cities globally, giving the site unparalleled speeds. Additionally, Cloudflare has top-notch security, protecting your site from DDoS (distributed denial of service) attacks and controlling how many bots access the site.

If this sounds like an ideal solution, you're right -- more than 162,000 customers have thought the same thing. 2,042 clients spend more than $100,000 annually, a metric that rose 44% in 2022. Throughout 2022, Cloudflare grew its revenue by 49%, and is projected to continue that success, with management guiding for 37% growth in 2023.

But you have to pay a premium to own the stock for that growth.

NET PS Ratio Chart

NET PS Ratio data by YCharts

At 20 times sales, Cloudflare isn't a cheap stock. But if it can continue growing at a 30% or greater pace for the next few years, this price could be a bargain.

While not profitable from a traditional standpoint, Cloudflare expects to produce non-GAAP earnings per share of $0.16 this year, which is a step in the right direction. As Cloudflare works toward profitability and captures its $135 billion estimated market, the stock looks like a strong buy.


Twilio helps its clients better communicate with its customers. Its products can set up automated text messages to confirm appointments, set up video calls, and even help lower customer acquisition costs. However, Twilio's growth-at-all-costs mindset has gotten the stock and company into trouble.

Since Twilio went public in 2015, it hasn't produced a cent in profits. Now that growth is slowing, management has begun transitioning to become profitable.

Twilio has gone through two layoffs, letting go of 11% of its workforce in September 2022 and another 17% in February to achieve this goal. After these layoffs, Twilio's management projected about $300 million in non-GAAP operating profits during 2023. This isn't true profitability as it doesn't add in stock-based compensation, but every company has to start somewhere.

Although Twilio's revenue grew 22% in Q4, in Q1, that will slow to a 14% pace, further underlying why Twilio needs to become profitable. So why is this stock a buy? Its valuation. At 3.5 times sales, Twilio is a genuine bargain, as there is a lot of short-term pessimism baked into the stock.

TWLO PS Ratio Chart

TWLO PS Ratio data by YCharts

Furthermore, Wall Street analysts project Twilio's growth will kick back in as the economy recovers. In 2023, they project only 12.4% growth, but this number accelerates to 16.2% in 2024.

Twilio is trading like it won't grow again. However, this is likely a false assumption, and as the company works toward profitability, it could be a bargain at these prices.


Although you've likely never heard of Adyen (it is based in the Netherlands), it provides payment processing services. With competitors like PayPal, Block, and Stripe, it has some stiff competition. However, the company is rapidly growing and establishing a solid footprint.

In the second half of 2022, Adyen's processed payment volume rose 41% to 422 billion euros, or about $445 billion. For reference, PayPal processed (on a comparable basis) around $555 billion. Adyen also has a Europe, Middle East, and Africa (AMEA) concentration, but is rapidly growing in other locations.

Region Revenue Makeup YOY Second Half of 2022 Growth
EMEA 55.3% 20%
North America 26.4% 45%
Asia-Pacific 10.8% 44%
Latin America 7.4% 36%

Data source: Adyen. YOY = Year over Year.

With Adyen gaining ground in key locations, it is a stock that investors should look out for now. Its revenue is expected to grow at a 30% clip next year, which should please investors. Furthermore, the stock trades at a reasonable 19 times free cash flow, so you get both growth and value.

If you're looking for a stock to make you money over the long term, you'd be hard-pressed to find a better one than Adyen.