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.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. Keeping that in mind, here are two growth stocks with significant upside potential and one that could be down big.
One Growth Stock to Sell:
Commvault (CVLT)
One-Year Revenue Growth: +15.5%
Born from the need to create ironclad protection in an increasingly dangerous digital world, Commvault (NASDAQ: CVLT) provides data protection and cyber resilience software that helps organizations secure, back up, and recover their data across on-premises, hybrid, and multi-cloud environments.
Why Does CVLT Worry Us?
- Products, pricing, or go-to-market strategy may need some adjustments as its 12.2% average billings growth over the last year was weak
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- Efficiency fell over the last year as its operating margin declined by 1.5 percentage points because it pursued growth instead of profits
Commvault’s stock price of $150.98 implies a valuation ratio of 4.7x forward price-to-sales. If you’re considering CVLT for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Buy:
Oscar Health (OSCR)
One-Year Revenue Growth: +42.8%
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Will OSCR Beat the Market?
- Annual revenue growth of 45.5% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 37.4% annually
- Free cash flow margin jumped by 23.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $33.08 per share, Oscar Health trades at 18.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Axos Financial (AX)
One-Year Revenue Growth: +17%
Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial (NYSE: AX) is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.
Why Is AX a Good Business?
- Market share has increased this cycle as its 18.3% annual net interest income growth over the last five years was exceptional
- Strong performance of its loan book leads to a best-in-class net interest margin of 4.8%
- Share buybacks catapulted its annual earnings per share growth to 18.8%, which outperformed its revenue gains over the last five years
Axos Financial is trading at $88.49 per share, or 1.3x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
