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.
Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. On that note, here are two growth stocks expanding their competitive advantages and one whose momentum may slow.
One Growth Stock to Sell:
MongoDB (MDB)
One-Year Revenue Growth: +19.2%
Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ: MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.
Why Does MDB Worry Us?
- Rapid expansion strategy came at the expense of operating margin profitability
- Poor free cash flow margin of 7.6% for the last year limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
MongoDB’s stock price of $217.51 implies a valuation ratio of 7.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MDB.
Two Growth Stocks to Watch:
Semrush (SEMR)
One-Year Revenue Growth: +22.2%
Born from the need to make sense of the complex digital marketing landscape, Semrush (NYSE: SEMR) is a software-as-a-service platform that helps companies improve their online visibility, analyze digital marketing efforts, and optimize content across search engines and social media.
Why Are We Positive On SEMR?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 23% over the last year
- Software is difficult to replicate at scale and results in a premier gross margin of 81.4%
- Free cash flow margin is forecasted to grow by 5.9 percentage points in the coming year, potentially giving the company more chips to play with
Semrush is trading at $7.60 per share, or 2.4x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.
FTAI Aviation (FTAI)
One-Year Revenue Growth: +55.9%
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.
Why Do We Love FTAI?
- Market share has increased this cycle as its 41.4% annual revenue growth over the last two years was exceptional
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 67% outpaced its revenue gains
- Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day
At $140.33 per share, FTAI Aviation trades at 25.9x 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
When Trump unveiled his aggressive tariff plan in April 2025, 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 Strong Momentum 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-micro-cap company Tecnoglass (+1,754% 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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