Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. Keeping that in mind, here is one growth stock where the best is yet to come and two that could be down big.
Two Growth Stocks to Sell:
Lincoln Educational (LINC)
One-Year Revenue Growth: +16.9%
Established in 1946, Lincoln Educational (NASDAQ: LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.
Why Are We Out on LINC?
- Number of enrolled students has disappointed over the past two years, indicating weak demand for its offerings
- Cash-burning history makes us doubt the long-term viability of its business model
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $20.86 per share, Lincoln Educational trades at 27.4x forward P/E. Read our free research report to see why you should think twice about including LINC in your portfolio.
UFP Technologies (UFPT)
One-Year Revenue Growth: +29.5%
With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ: UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.
Why Is UFPT Not Exciting?
- Modest revenue base of $598 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Estimated sales growth of 5% for the next 12 months implies demand will slow from its two-year trend
UFP Technologies’s stock price of $231.59 implies a valuation ratio of 23x forward P/E. Dive into our free research report to see why there are better opportunities than UFPT.
One Growth Stock to Watch:
IonQ (IONQ)
One-Year Revenue Growth: +113%
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Are We Positive On IONQ?
- Market share has increased this cycle as its 101% annual revenue growth over the last two years was exceptional
- Market share is on track to rise over the next 12 months as its 112% projected revenue growth implies demand will accelerate from its two-year trend
- Adjusted operating margin improvement of 4,567.4 percentage points over the last five years demonstrates its ability to scale efficiently
IonQ is trading at $48.19 per share, or 79x 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.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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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