2 Growth Stocks Set to Flourishand 1 We Avoid

August 12, 2025 at 00:38 AM EDT

FRSH Cover Image

Growth is oxygen. But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.

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. That said, here are two growth stocks where the best is yet to come and one climbing an uphill battle.

One Growth Stock to Sell:

Corcept (CORT)

One-Year Revenue Growth: +25.7%

Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.

Why Does CORT Fall Short?

Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 16.9 percentage points
Earnings per share fell by 2.8% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Diminishing returns on capital suggest its earlier profit pools are drying up

Corcept’s stock price of $74.90 implies a valuation ratio of 41.4x forward P/E. Check out our free in-depth research report to learn more about why CORT doesn’t pass our bar.

Two Growth Stocks to Watch:

Freshworks (FRSH)

One-Year Revenue Growth: +19.8%

Founded in Chennai, India in 2010 with the idea of creating a “fresh” helpdesk product, Freshworks (NASDAQ: FRSH) offers a broad range of software targeted at small and medium-sized businesses.

Why Could FRSH Be a Winner?

Ability to secure long-term commitments with customers is evident in its 20.1% ARR growth over the last year
Software is difficult to replicate at scale and results in a stellar gross margin of 84.6%
Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage

At $12.76 per share, Freshworks trades at 4.1x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

American Superconductor (AMSC)

One-Year Revenue Growth: +63.7%

Founded in 1987, American Superconductor (NASDAQ: AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.

Why Are We Backing AMSC?

Market share has increased this cycle as its 49.8% annual revenue growth over the last two years was exceptional
Free cash flow profile has moved into positive territory over the last five years, showing the company has crossed a key inflection point
Improving returns on capital suggest its past investments are beginning to deliver value

American Superconductor is trading at $52.69 per share, or 91.5x forward P/E. Is now a good time to buy? Find out in our full 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.

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