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3 Growth Stocks We Keep Off Our Radar

CELH 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.

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 three growth stocks climbing an uphill battle and some other opportunities you should consider instead.

Celsius (CELH)

One-Year Revenue Growth: +85.5%

With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.

Why Does CELH Worry Us?

  1. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 5.9 percentage points
  2. Free cash flow margin shrank by 4.8 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Celsius’s stock price of $35.75 implies a valuation ratio of 20.7x forward P/E. Check out our free in-depth research report to learn more about why CELH doesn’t pass our bar.

Pangaea (PANL)

One-Year Revenue Growth: +17.8%

Established in 1996, Pangaea Logistics (NASDAQ: PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes.

Why Are We Cautious About PANL?

  1. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 5 percentage points
  2. Earnings per share have contracted by 30.5% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
  3. Poor free cash flow margin of 1.1% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

At $7.02 per share, Pangaea trades at 27.5x forward P/E. To fully understand why you should be careful with PANL, check out our full research report (it’s free).

MasTec (MTZ)

One-Year Revenue Growth: +16.2%

Involved in the 1996 Olympic Games MasTec (NYSE: MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.

Why Do We Think Twice About MTZ?

  1. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 12.7%
  2. Subpar operating margin of 3% constrains its ability to invest in process improvements or effectively respond to new competitive threats
  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.8 percentage points

MasTec is trading at $321.67 per share, or 36.1x forward P/E. Dive into our free research report to see why there are better opportunities than MTZ.

Stocks We Like More

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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.

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