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. On that note, here are two growth stocks expanding their competitive advantages and one facing an uphill battle.
One Growth Stock to Sell:
Atlanticus Holdings (ATLC)
One-Year Revenue Growth: +61.6%
Using data analytics to serve the millions of Americans with less-than-perfect credit scores, Atlanticus Holdings (NASDAQ: ATLC) provides technology and services that help lenders offer credit products to consumers often overlooked by traditional financing providers.
Why Are We Hesitant About ATLC?
- Earnings per share have dipped by 3.1% annually over the past four years, which is concerning because stock prices follow EPS over the long term
Atlanticus Holdings’s stock price of $89.50 implies a valuation ratio of 8.8x forward P/E. To fully understand why you should be careful with ATLC, check out our full research report (it’s free).
Two Growth Stocks to Buy:
Remitly (RELY)
One-Year Revenue Growth: +27.3%
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Do We Love RELY?
- Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 28.4% annually over the last two years
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 247% annually, topping its revenue gains
- Free cash flow margin grew by 35.2 percentage points over the last few years, giving the company more chips to play with
Remitly is trading at $19.61 per share, or 8.9x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Charles Schwab (SCHW)
One-Year Revenue Growth: +21.2%
Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE: SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.
Why Is SCHW a Top Pick?
- Annual revenue growth of 15.9% over the past two years was outstanding, reflecting market share gains this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- ROE punches in at 14.9%, illustrating management’s expertise in identifying profitable investments
At $90.99 per share, Charles Schwab trades at 14.2x 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
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.
