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2 Growth Stocks with Explosive Upside and 1 to Turn Down

FROG Cover Image

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

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 that could be down big.

One Growth Stock to Sell:

JFrog (FROG)

One-Year Revenue Growth: +21.7%

Named after the founders' affinity for frogs, JFrog (NASDAQ: FROG) provides a software-as-a-service platform that makes developing and releasing software easier and faster, especially for large teams.

Why Is FROG Not Exciting?

  1. Rapid expansion strategy came at the expense of operating profitability
  2. Projected 6.6 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position

JFrog is trading at $41 per share, or 9.4x forward price-to-sales. If you’re considering FROG for your portfolio, see our FREE research report to learn more.

Two Growth Stocks to Watch:

Atlassian (TEAM)

One-Year Revenue Growth: +19.1%

Founded by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian (NASDAQ: TEAM) provides software as a service that makes it easier for large teams of software developers to manage projects, especially in software development.

Why Are We Fans of TEAM?

  1. Average billings growth of 14.7% over the last year enhances its liquidity and shows there is steady demand for its products
  2. Software platform has product-market fit given the rapid recovery of its customer acquisition costs
  3. TEAM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $224.01 per share, Atlassian trades at 10x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Comfort Systems (FIX)

One-Year Revenue Growth: +31.5%

Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.

Why Should You Buy FIX?

  1. Backlog has averaged 30.5% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
  2. Earnings per share grew by 68.2% annually over the last two years, massively outpacing its peers
  3. Returns on capital are growing as management capitalizes on its market opportunities

Comfort Systems’s stock price of $465.23 implies a valuation ratio of 25x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our 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 176% over the last five years.

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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.

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