Growth stocks saw explosive gains after the Covid-19 selloff. The raging bull market saw speculation run wild as liquidity flooded into the financial system, emboldening investors. That allowed the best and worst growth stocks to continue their indefinite moves higher.

As it turns out though, those types of unfettered gains can’t last forever.

Last year brought with it a bear market that shattered a bulk of these companies, crushing their stock prices in a matter of months. We never should have had so many SPAC deals coming to market, or all these EV stocks getting multi-billion-dollar valuations without any visibility in terms of revenue or profits moving forward.

On the plus side, this decline resulted in significantly-reduced valuations across the board. Thus, those growth stocks with solid business models and profit potential became much more attractive. This list includes three great examples of such stocks, which have rebounded significantly off their 2022 lows.

The Trade Desk (TTD)

The Trade Desk (NASDAQ:TTD) actually gets credit for being a great company. Not many people will sit here and say it’s not a well-run firm or that co-founder and CEO Jeff Green hasn’t done an excellent job.

In fact, the company just reported earnings, and the numbers speak for themselves. Earnings of 23 cents a share were almost double analysts’ expectations of 12 cents a share, while revenue of ~$383 million grew 21.4% year-over-year and beat analysts’ expectations by almost $20 million.

The best part? The company’s guidance, calling for revenue of “at least $452 million” next quarter, which was well-above consensus estimates.

All this company seems to do is deliver. Even when its peers can’t keep up with expected growth, The Trade Desk finds a way. The company was profitable before Covid-19, and has remained so after the pandemic. Not many growth stocks can make such a claim.

This one will take out its all-time high. It’s just a matter of “when,” not “if.”

Snowflake (SNOW)

When Snowflake (NYSE:SNOW) went public, I balked at the valuation. So did many others. But when we’re in the hot part of a bull market with plenty of liquidity, new IPOs with strong growth garner a lot of attention. Then when companies like Salesforce (NYSE:CRM) and Warren Buffett’s Berkshire Hathaway (NYSE:BRK.B) pile in, it drives valuations even higher.

It’s not that Snowflake stock is now cheap on an absolute basis. It isn’t. However, it’s a lot cheaper than it was.

Further, the firm has so much growth that I believe at some point, the stock will enjoy a ferocious run. It seems like the market agrees, as shares have rallied 20% in about five days now (from May 5 to May 10).

Analysts expect about 40% revenue growth this year, then 37% growth next year, followed by 33% growth in 2025. If Snowflake hits those measures (or exceeds them), the company will generate more than $5.2 billion in revenue. Pretty incredible when it did about $2 billion in sales in 2022.

Snowflake stock is still expensive by most measures, and in some ways, it’s one of the best growth stocks with a unique value proposition. If we do get a deep dip, keep it on your list.

Tesla (TSLA)

This list isn’t about the best growth stocks to double or have the highest revenue run rate. It’s a list looking for the best growth stocks with competitive advantages in 2023. When we look at growth stocks from that perspective, Tesla (NASDAQ:TSLA) has to stand out.

All across the automotive space, EV stocks are getting wiped out. Arrival (NASDAQ:ARVL), Nikola (NASDAQ:NKLA), Lucid Motors (NASDAQ:LCID) and others are badly struggling. Indeed, if we see a true recession materialize, many more names could be added to this list.

That’s because the largest auto companies already hold a massive lead over their competitors. They have the financing, supply chains and manufacturing process down. In the case of Tesla, it dominates the EV space and it has a very loyal fan base.

While others are playing defense, Tesla is mostly playing offense.

That said, Tesla is not immune to swoons in the global economy, and it won’t be immune in the future either. Analysts expect 22% revenue growth this year before an acceleration up to almost 30% revenue growth next year. While estimates do call for a 15% dip in earnings this year, expectations call for a 40% recharge next year.

Excluding the estimates though, this firm has a tremendous competitive advantage in this space, over new EV start-ups and legacy automakers alike.

On the date of publication, Bret Kenwell held a long position in TTD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.