Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. On that note, here are two growth stocks with significant upside potential and one climbing an uphill battle.
One Growth Stock to Sell:
John Bean (JBTM)
One-Year Revenue Growth: +65%
Tracing back to its invention of the mechanical milk bottle filler in 1884, John Bean (NYSE: JBT) designs, manufactures, and sells equipment used for food processing and aviation.
Why Do We Think Twice About JBTM?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 6.1 percentage points
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $140.82 per share, John Bean trades at 20.9x forward P/E. Check out our free in-depth research report to learn more about why JBTM doesn’t pass our bar.
Two Growth Stocks to Watch:
Confluent (CFLT)
One-Year Revenue Growth: +23%
Built by the original creators of Apache Kafka, the popular open-source messaging system, Confluent (NASDAQ: CFLT) provides a data infrastructure platform that enables organizations to connect their applications, systems, and data layers around real-time data streams.
Why Does CFLT Stand Out?
- Average billings growth of 32.6% over the last year enhances its liquidity and shows there is steady demand for its products
- Estimated revenue growth of 16.2% for the next 12 months implies its momentum over the last two years will continue
- Gross margin of 74.2% provides the financial cushion needed to invest in marketing and develop new products
Confluent’s stock price of $22.99 implies a valuation ratio of 6.3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Coupang (CPNG)
One-Year Revenue Growth: +18.7%
Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE: CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".
Why Does CPNG Catch Our Eye?
- Active Customers have increased by an average of 11.8% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Additional sales over the last three years increased its profitability as the 32% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 8 percentage points over the last few years, giving the company more chips to play with
Coupang is trading at $31.95 per share, or 32.1x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
