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. Keeping that in mind, here is one growth stock with significant upside potential and two whose momentum may slow.
Two Growth Stocks to Sell:
Twilio (TWLO)
One-Year Revenue Growth: +15.7%
Known for the clever "Twilio Magic" demo that had developers creating functioning communications apps in minutes, Twilio (NYSE: TWLO) provides a platform that enables businesses to communicate with their customers through voice, messaging, email, and other digital channels.
Why Are We Hesitant About TWLO?
- Net revenue retention rate of 110% trails the industry benchmark of 110%+ and shows it has a tough time increasing customer spending
- Gross margin of 48.7% is way below its competitors, leaving less money to invest in areas like marketing and R&D
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
Twilio’s stock price of $195.06 implies a valuation ratio of 5.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than TWLO.
Viking (VIK)
One-Year Revenue Growth: +21.9%
From a single river cruise offering to a fleet of 96 vessels across multiple continents, Viking (NYSE: VIK) operates a fleet of small luxury cruise ships offering river, ocean, and expedition voyages focused on cultural enrichment and destination immersion.
Why Are We Out on VIK?
- Sales trends were unexciting over the last two years as its 17.5% annual growth was below the typical consumer discretionary company
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Low free cash flow margin of 22.8% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
At $83.61 per share, Viking trades at 26.1x forward P/E. Check out our free in-depth research report to learn more about why VIK doesn’t pass our bar.
One Growth Stock to Watch:
Intuitive Surgical (ISRG)
One-Year Revenue Growth: +21.4%
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Should ISRG Be on Your Watchlist?
- Annual revenue growth of 20.2% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Robust free cash flow margin of 19.6% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
Intuitive Surgical is trading at $453.08 per share, or 42.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
