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Growth vs. Value: Why Hybrid Stocks Offer the Best of Both Worlds
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Published in Stocks and Investing on Wednesday, November 12th 2025 at 10:08 GMT by Seeking Alpha- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Growth or Value? Why Not Both? A Look at Ten Hybrid Stocks Worth Watching
The long‑standing debate in equity investing—growth versus value—has never been more nuanced. On the one hand, growth investors chase companies with lofty earnings momentum, ever‑expanding addressable markets, and a knack for reinvesting capital to fuel further expansion. On the other hand, value investors seek bargains: low multiples, high free‑cash‑flow yields, and firms that appear “undervalued” relative to their fundamentals. The real world, however, often presents a blend of both. In a recent SeekingAlpha article, the author argues that the best performers in the market today are those that combine solid growth prospects with attractive valuation metrics. To illustrate this point, the piece lists ten stocks that the author believes embody this “growth‑value hybrid” archetype.
1. Adobe Inc. (ADBE) – Software as a Service (SaaS) with Proven Margins
Adobe’s transition from perpetual licensing to a cloud‑based subscription model has paid off: revenue grew 25% YoY in 2023, and gross margins tightened to 87% from 84% a year earlier. While its price‑to‑sales (P/S) ratio sits around 18x—higher than the broader S&P 500—it is still below many pure growth peers such as Shopify. Adobe’s disciplined capital allocation, combined with a sizable and growing content‑creation customer base, keeps its growth prospects intact while offering a cushion against valuation swings.
2. Shopify Inc. (SHOP) – E‑commerce Infrastructure in a Rapidly Scaling Market
Shopify’s platform serves 1.7 million merchants worldwide, and its revenue has surged 38% in 2023. Despite a P/E of ~95x, its enterprise‑value‑to‑EBITDA (EV/EBITDA) of 25x is more palatable than many of its direct competitors, and its return on equity (ROE) is 12%—a strong signal of efficient capital use. The company’s aggressive investment in fulfillment and AI‑driven merchandising keeps its growth trajectory robust, making it a standout in the “growth‑value” dialogue.
3. Square, Inc. (SQ) – Payments and Financial Services with a Forward‑Looking Vision
Square has expanded its product suite beyond card‑reader hardware into small‑business banking, e‑commerce services, and crypto‑related offerings. Its revenue growth of 30% in 2023, combined with a P/S of 18x and an EV/EBITDA of 23x, places Square in a sweet spot where it isn’t a hyper‑growth play but still offers substantive upside. The company’s focus on improving its gross margin through digital services and its strong cash‑free‑cash flow yield (~4%) add a layer of value to its growth profile.
4. Okta, Inc. (OKTA) – Identity and Access Management in a Cloud‑First Era
Okta remains the de‑facto leader in identity‑as‑a‑service (IDaaS), a field experiencing double‑digit growth. The firm’s 2023 revenue rose 26%, and its ROE hovered around 8%. Okta’s valuation sits at a P/E of roughly 90x, but its EV/EBITDA of 19x is lower than many of its pure growth peers. The company’s expanding partner ecosystem and continued focus on platform reliability provide a solid growth engine while keeping the valuation anchored.
5. Palantir Technologies Inc. (PLTR) – Data‑Analytics with a Government and Enterprise Footprint
Palantir’s revenue jumped 50% in 2023, driven by deepening U.S. government contracts and increased enterprise adoption. While its P/E sits near 45x, its EV/EBITDA of 12x—well below the SaaS average—illustrates its undervaluation relative to peers. The firm’s high gross margin (~78%) and a strong focus on recurring revenue streams reinforce its hybrid status.
6. Zoom Video Communications, Inc. (ZM) – The Remote‑Collaboration Standard
Zoom’s business model—subscription‑based video conferencing—has seen sustained demand, with 2023 revenue up 28%. Despite a lofty P/E of ~70x, the company’s EV/EBITDA of 17x is comparatively lower than rivals such as Atlassian. Zoom’s margin expansion (from 45% to 48% over the year) and its strategic push into hybrid work solutions bolster its growth case while its current valuation offers a buffer.
7. Twilio Inc. (TWLO) – Cloud Communications Platform for Developers
Twilio’s 2023 revenue growth of 31% and strong gross margin expansion (to 66%) position it well within the hybrid framework. Its P/E is around 80x, but its EV/EBITDA of 26x is considerably more modest than its peers. The platform’s API‑driven ecosystem and its recent focus on low‑code, no‑code tools add upside potential without excessively inflating the valuation.
8. Atlassian Corporation Plc (TEAM) – Productivity Software for Modern Teams
Atlassian has seen a 23% revenue increase in 2023, driven by its Jira, Confluence, and Opsgenie platforms. Its P/E sits at ~55x, while its EV/EBITDA of 22x falls below many SaaS competitors. The company’s recurring revenue model, high gross margin (~75%), and the growing trend of remote and distributed work provide a solid growth engine coupled with a relatively conservative valuation.
9. DocuSign, Inc. (DOCU) – Electronic Signature and Transaction Management
DocuSign’s 2023 revenue grew 20%, and its valuation (P/E ~75x) is comparable to pure growth stocks like Salesforce. Yet its EV/EBITDA of 23x, coupled with a 48% gross margin, suggests the stock is not as expensive as some peers. Its strategic acquisitions of AI‑based workflow tools and its growing presence in regulated industries provide additional upside potential.
10. Workday, Inc. (WDAY) – Human Capital Management and Finance Cloud
Workday’s revenue increased 22% in 2023, with a gross margin of 72%. While its P/E is roughly 55x, its EV/EBITDA of 20x is attractive for a company with such a high growth potential. Workday’s focus on high‑margin professional services, cross‑sell of its HR and finance platforms, and its strong pipeline of new contracts make it a compelling hybrid.
How the Author Evaluated “Hybrid” Stocks
The SeekingAlpha piece lays out a clear methodology for identifying these hybrid candidates:
- Revenue Growth – A minimum of 20% YoY growth over the past three years.
- Margin Expansion – Gross margins at or above 70% with an upward trajectory.
- Valuation Multiples – P/E and EV/EBITDA below the industry average, often within the 10–25x range.
- Capital Efficiency – ROE above 10% and free‑cash‑flow yield above 3%.
- Strategic Position – A product or platform that serves a high‑growth market with network effects.
By applying these filters, the author believes the list strikes a balance between upside potential and downside protection.
Why “Growth‑Value” Becomes Attractive in Today’s Market
The author argues that the current macro backdrop—low but rising interest rates, persistent inflationary pressures, and a lingering risk of supply‑chain bottlenecks—makes purely speculative growth plays riskier. Investors are increasingly demanding more tangible fundamentals and a buffer against volatility. At the same time, pure value plays have been underperforming in a high‑growth economy. Hybrid stocks offer a middle ground: they carry robust earnings momentum, while still trading at multiples that leave room for correction or additional upside.
Bottom Line
The ten names highlighted—Adobe, Shopify, Square, Okta, Palantir, Zoom, Twilio, Atlassian, DocuSign, and Workday—illustrate a growing trend: investors can capture growth’s rewards without surrendering the safety net of value. Each of these firms boasts compelling revenue trajectories, improving margins, and valuation metrics that suggest they are not yet priced to perfection. As the market continues to oscillate between bullish and bearish phases, these hybrid players could provide a disciplined way to navigate volatility while still positioning for long‑term gains.
Disclaimer: This summary reflects the content of a SeekingAlpha article and does not constitute investment advice. Readers should perform their own due diligence before making any investment decisions.
Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/news/4520462-growth-or-value-why-not-both-here-are-10-names-to-watch ]
