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2 Growth Stocks with All-Star Potential and 1 to Approach with Caution

TEAM Cover Image

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. That said, here are two growth stocks expanding their competitive advantages and one whose momentum may slow.

One Growth Stock to Sell:

Great Lakes Dredge & Dock (GLDD)

One-Year Revenue Growth: +28%

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ: GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Why Is GLDD Not Exciting?

  1. Muted 1.8% annual revenue growth over the last five years shows its demand lagged behind its industrials peers
  2. Negative free cash flow raises questions about the return timeline for its investments
  3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $11.96 per share, Great Lakes Dredge & Dock trades at 17.3x forward P/E. Check out our free in-depth research report to learn more about why GLDD doesn’t pass our bar.

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 Do We Love TEAM?

  1. Billings have averaged 14.7% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
  2. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Atlassian’s stock price of $213.70 implies a valuation ratio of 9.5x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.

Cal-Maine (CALM)

One-Year Revenue Growth: +60%

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ: CALM) produces, packages, and distributes eggs.

Why Do We Like CALM?

  1. Remarkable 35.3% revenue growth over the last three years demonstrates its ability to capture significant market share
  2. Additional sales over the last three years increased its profitability as the 280% annual growth in its earnings per share outpaced its revenue
  3. Robust free cash flow margin of 17.9% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy

Cal-Maine is trading at $102.90 per share, or 9.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. 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 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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