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.

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. On that note, here are two growth stocks with significant upside potential and one that could be down big.

One Growth Stock to Sell:

Granite Ridge Resources (GRNT)

One-Year Revenue Growth: +18.5%

Operating without drilling rigs or field crews of its own, Granite Ridge Resources (NYSE: GRNT) owns interests in oil and natural gas wells across six major US shale basins.

Why Are We Wary of GRNT?

1. Revenue base of $450.3 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
2. Expenses have increased as a percentage of revenue over the last five years as its EBITDA margin fell by 29.6 percentage points
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Granite Ridge Resources’s stock price of $5.89 implies a valuation ratio of 7.9x forward P/E. To fully understand why you should be careful with GRNT, check out our full research report (it’s free).

Two Growth Stocks to Buy:

ServiceNow (NOW)

One-Year Revenue Growth: +20.9%

Built on a single code base that processes more than 80 billion workflows and 6.5 trillion transactions annually, ServiceNow (NYSE: NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.

Why Are We Backing NOW?

1. ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
2. Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 13.7%, and it turbocharged its profits by achieving some fixed cost leverage
3. Robust free cash flow margin of 34.9% gives it many options for capital deployment

At $102.31 per share, ServiceNow trades at 6.7x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

AMD (AMD)

One-Year Revenue Growth: +34.3%

Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.

Why Is AMD a Top Pick?

1. Impressive 28.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Projected revenue growth of 34.9% for the next 12 months is above its two-year trend, pointing to accelerating demand
3. Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 26.4% annually

AMD is trading at $219.05 per share, or 32.7x forward P/E. 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

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.