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.
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:
Upstart (UPST)
One-Year Revenue Growth: +34.1%
Founded by the former head of Google's enterprise business, Upstart (NASDAQ: UPST) is an AI-powered lending platform facilitating loans for banks and consumers.
Why Do We Think Twice About UPST?
- Software offerings aren’t resonating in this new AI paradigm as its revenue declined by 11.4% annually over the last three years
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- 8× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Upstart’s stock price of $78.36 implies a valuation ratio of 6.9x forward price-to-sales. Check out our free in-depth research report to learn more about why UPST doesn’t pass our bar.
Two Growth Stocks to Buy:
Nova (NVMI)
One-Year Revenue Growth: +41%
Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Why Is NVMI a Top Pick?
- Market share has increased this cycle as its 14.3% annual revenue growth over the last two years was exceptional
- Robust free cash flow margin of 28.6% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
- ROIC punches in at 31.2%, illustrating management’s expertise in identifying profitable investments
At $279.27 per share, Nova trades at 33.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
McKesson (MCK)
One-Year Revenue Growth: +16.2%
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Should You Buy MCK?
- Annual revenue growth of 13.9% over the last two years beat the sector average and underscores the unique value of its offerings
- Dominant market position is represented by its $359.1 billion in revenue, which creates significant barriers to entry in this highly regulated industry
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.6% exceeded its revenue gains over the last five years
McKesson is trading at $709.80 per share, or 19.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2024, 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 Growth Stocks for this month. 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 Kadant (+351% 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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