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 where the best is yet to come and one that could be down big.
One Growth Stock to Sell:
TaskUs (TASK)
One-Year Revenue Growth: +19%
Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ: TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies.
Why Does TASK Fall Short?
- Earnings per share lagged its peers over the last three years as they only grew by 2% annually
- Free cash flow margin dropped by 3.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- ROIC of 4.3% reflects management’s challenges in identifying attractive investment opportunities
TaskUs is trading at $13.28 per share, or 8.2x forward P/E. To fully understand why you should be careful with TASK, check out our full research report (it’s free for active Edge members).
Two Growth Stocks to Watch:
ServiceNow (NOW)
One-Year Revenue Growth: +21.1%
Built on a single code base that processes over 4 billion workflow transactions daily, ServiceNow (NYSE: NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
Why Will NOW Outperform?
- Sales pipeline is in good shape as its current remaining performance obligations (cRPO) averaged 21.8% growth over the last year
- Highly efficient business model is illustrated by its impressive 13.9% operating margin, and its profits increased over the last year as it scaled
- NOW is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
ServiceNow’s stock price of $940.56 implies a valuation ratio of 13.1x 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.
P10 (PX)
One-Year Revenue Growth: +15.6%
Operating as a bridge between institutional investors and hard-to-access private market opportunities, P10 (NYSE: PX) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.
Why Does PX Stand Out?
- Impressive 41.3% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last three years as its EPS has compounded at 36.5% annually
At $10.15 per share, P10 trades at 10.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum 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
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