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. That said, here are two growth stocks with significant upside potential and one that could be down big.

One Growth Stock to Sell:

Novavax (NVAX)

One-Year Revenue Growth: +64.7%

Pioneering a nanoparticle technology that mimics the molecular structure of disease pathogens, Novavax (NASDAQ: NVAX) develops and commercializes protein-based vaccines for infectious diseases, with a primary focus on its COVID-19 vaccine and combination respiratory vaccine candidates.

Why Does NVAX Give Us Pause?

1. 6.9% annual revenue growth over the last two years was slower than its healthcare peers
2. Estimated sales decline of 66.2% for the next 12 months implies a challenging demand environment
3. Free cash flow margin shrank by 45.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $8.18 per share, Novavax trades at 3.5x forward price-to-sales. Check out our free in-depth research report to learn more about why NVAX doesn’t pass our bar.

Two Growth Stocks to Watch:

Zscaler (ZS)

One-Year Revenue Growth: +23.9%

Pioneering the "zero trust" approach that has fundamentally changed enterprise network security, Zscaler (NASDAQ: ZS) provides a cloud-based security platform that connects users, devices, and applications securely without traditional network-based security hardware.

Why Is ZS a Good Business?

1. Billings have averaged 24.3% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. Estimated revenue growth of 20.9% for the next 12 months implies its momentum over the last two years will continue
3. Robust free cash flow margin of 29.1% gives it many options for capital deployment

Zscaler is trading at $141.72 per share, or 6x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Phibro Animal Health (PAHC)

One-Year Revenue Growth: +20.1%

With a portfolio of approximately 800 product lines serving farmers and veterinarians in 90 countries, Phibro Animal Health (NASDAQ: PAHC) develops, manufactures, and markets health products for livestock and companion animals, including antibacterials, vaccines, nutritional supplements, and mineral additives.

Why Are We Positive On PAHC?

1. Annual revenue growth of 21.7% over the last two years was superb and indicates its market share increased during this cycle
2. Operating profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
3. Earnings per share have massively outperformed its peers over the last five years, increasing by 16.4% annually

Phibro Animal Health trades at a stock price of $55.34. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.