Growth is oxygen. But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.

Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. On that note, here are two growth stocks with significant upside potential and one that could be down big.

One Growth Stock to Sell:

Champion Homes (SKY)

One-Year Revenue Growth: +16.9%

Founded in 1951, Champion Homes (NYSE: SKY) is a manufacturer of modular homes and buildings in North America.

Why Are We Cautious About SKY?

1. 4.4% annual revenue growth over the last two years was slower than its industrials peers
2. Incremental sales over the last two years were much less profitable as its earnings per share fell by 19.2% annually while its revenue grew
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $70.84 per share, Champion Homes trades at 21.1x forward P/E. To fully understand why you should be careful with SKY, check out our full research report (it’s free for active Edge members).

Two Growth Stocks to Buy:

GitLab (GTLB)

One-Year Revenue Growth: +29%

With its all-remote workforce pioneering a new approach to software development, GitLab (NASDAQ: GTLB) provides a single-application DevSecOps platform that helps development, operations, and security teams collaborate to build, secure, and deploy software faster.

Why Should You Buy GTLB?

1. Customers view its software as mission-critical to their operations as its ARR has averaged 30.9% growth over the last year
2. Software is difficult to replicate at scale and results in a best-in-class gross margin of 88.5%
3. Robust free cash flow margin of 25.9% gives it many options for capital deployment

GitLab’s stock price of $47.70 implies a valuation ratio of 7.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Houlihan Lokey (HLI)

One-Year Revenue Growth: +23.3%

Founded in 1972 and known for its expertise in complex financial situations, Houlihan Lokey (NYSE: HLI) is a global investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory services.

Why Is HLI a Top Pick?

1. Annual revenue growth of 17.2% over the past five years was outstanding, reflecting market share gains this cycle
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 29% over the last two years outstripped its revenue performance
3. Balance sheet strength has increased this cycle as its 43.7% annual tangible book value per share growth over the last two years was exceptional

Houlihan Lokey is trading at $192.23 per share, or 24.8x forward P/E. 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

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 6 Stocks for this week. 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.