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.
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 are two growth stocks where the best is yet to come and one that could be down big.
One Growth Stock to Sell:
FuelCell Energy (FCEL)
One-Year Revenue Growth: +48.6%
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
Why Are We Wary of FCEL?
- Backlog growth averaged a weak 6.2% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy
- Free cash flow margin shrank by 31 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
FuelCell Energy’s stock price of $6.70 implies a valuation ratio of 0.7x forward price-to-sales. To fully understand why you should be careful with FCEL, check out our full research report (it’s free).
Two Growth Stocks to Buy:
DoorDash (DASH)
One-Year Revenue Growth: +23.4%
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE: DASH) operates an on-demand food delivery platform.
Why Are We Backing DASH?
- Orders have increased by an average of 21% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 105% over the last three years outstripped its revenue performance
- Free cash flow margin expanded by 11.3 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
At $217.38 per share, DoorDash trades at 32.6x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Amphenol (APH)
One-Year Revenue Growth: +30.7%
With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.
Why Will APH Beat the Market?
- Annual revenue growth of 15.2% over the past two years was outstanding, reflecting market share gains this cycle
- Enormous revenue base of $16.78 billion provides significant distribution advantages
- Earnings per share grew by 19% annually over the last five years and trumped its peers
Amphenol is trading at $92.71 per share, or 39x 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
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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-small-cap company Exlservice (+354% 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.
