Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
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. That said, here are two growth stocks with significant upside potential and one whose momentum may slow.
One Growth Stock to Sell:
Sezzle (SEZL)
One-Year Revenue Growth: +92.9%
Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle (NASDAQ: SEZL) provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers.
Why Is SEZL Not Exciting?
- Push for growth has led to negative returns on capital, signaling value destruction
Sezzle’s stock price of $88.48 implies a valuation ratio of 23.8x forward P/E. To fully understand why you should be careful with SEZL, check out our full research report (it’s free).
Two Growth Stocks to Watch:
Eli Lilly (LLY)
One-Year Revenue Growth: +36.8%
Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.
Why Is LLY a Top Pick?
- Annual revenue growth of 34.3% over the past two years was outstanding, reflecting market share gains this cycle
- Unparalleled scale of $53.26 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
- Share buybacks catapulted its annual earnings per share growth to 21.6%, which outperformed its revenue gains over the last five years
At $737.41 per share, Eli Lilly trades at 27.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Hamilton Insurance Group (HG)
One-Year Revenue Growth: +21.3%
Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE: HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.
Why Do We Like HG?
- Annual revenue growth of 49.7% over the last two years was superb and indicates its market share increased during this cycle
- Net premiums earned surged by 26% annually over the past two years, reflecting strong market share gains this cycle
- Combined ratio improvement of 32.5 percentage points over the last two years demonstrates its ability to scale efficiently
Hamilton Insurance Group is trading at $24.01 per share, or 0.9x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 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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