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.
The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. On that note, here are two growth stocks where the best is yet to come and one climbing an uphill battle.
One Growth Stock to Sell:
Lemonade (LMND)
One-Year Revenue Growth: +33.5%
Built on the principle of giving back unused premiums to charitable causes selected by policyholders, Lemonade (NYSE: LMND) is a technology-driven insurance company that offers homeowners, renters, pet, car, and life insurance through an AI-powered digital platform.
Why Are We Hesitant About LMND?
- Incremental sales over the last two years were less profitable as its 17.4% annual earnings per share growth lagged its revenue gains
- Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 7.2% annually over the last five years
- Negative return on equity shows management lost money while trying to expand the business
Lemonade’s stock price of $68.53 implies a valuation ratio of 10.6x forward P/B. If you’re considering LMND for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Buy:
Nextpower (NXT)
One-Year Revenue Growth: +30%
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextpower (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Are We Bullish on NXT?
- Sales pipeline is in good shape as its backlog averaged 42.3% growth over the past two years
- Free cash flow margin jumped by 22.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Rising returns on capital show management is finding more attractive investment opportunities
At $120.53 per share, Nextpower trades at 26.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Armstrong World (AWI)
One-Year Revenue Growth: +15.1%
Started as a two-man shop dating back to the 1860s, Armstrong (NYSE: AWI) provides ceiling and wall products to commercial and residential spaces.
Why Is AWI a Top Pick?
- Impressive 11.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Excellent operating margin of 24.7% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
- Share repurchases over the last two years enabled its annual earnings per share growth of 18.7% to outpace its revenue gains
Armstrong World is trading at $200.88 per share, or 24.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
