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. Keeping that in mind, here are two growth stocks expanding their competitive advantages and one that could be down big.
One Growth Stock to Sell:
Commvault (CVLT)
One-Year Revenue Growth: +18.9%
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 Do We Think Twice About CVLT?
- Sales trends were unexciting over the last five years as its 10.3% annual growth was below the typical software company
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
- Operating margin dropped by 1.2 percentage points over the last year as the company focused on expansion rather than profitability
At $105.60 per share, Commvault trades at 3.6x forward price-to-sales. If you’re considering CVLT for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Watch:
Carvana (CVNA)
One-Year Revenue Growth: +51.7%
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Why Is CVNA on Our Radar?
- Impressive 21% annual revenue growth over the last three years indicates it’s winning market share
- Additional sales over the last three years increased its profitability as the 40.3% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 12.1 percentage points over the last few years, giving the company more chips to play with
Carvana is trading at $73.27 per share, or 17.3x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Sezzle (SEZL)
One-Year Revenue Growth: +46.1%
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 Will SEZL Outperform?
- Annual revenue growth of 67.4% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 65% annually over the last one years and trumped its peers
Sezzle’s stock price of $116.73 implies a valuation ratio of 20.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% 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.
