Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
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. Keeping that in mind, here are two growth stocks where the best is yet to come and one that could be down big.
One Growth Stock to Sell:
Hamilton Insurance Group (HG)
One-Year Revenue Growth: +18.7%
Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE: HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.
Why Does HG Fall Short?
- Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
- Annual earnings per share growth of 14% underperformed its revenue over the last two years, showing its incremental sales were less profitable
Hamilton Insurance Group’s stock price of $29.86 implies a valuation ratio of 1x forward P/B. If you’re considering HG for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Buy:
SPX Technologies (SPXC)
One-Year Revenue Growth: +17.4%
With roots dating back to 1912 as the Piston Ring Company, SPX Technologies (NYSE: SPXC) supplies specialized infrastructure equipment for HVAC systems and detection and measurement applications across industrial, commercial, and utility markets.
Why Is SPXC a Top Pick?
- Market share has increased this cycle as its 15.1% annual revenue growth over the last five years was exceptional
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 23.6% outpaced its revenue gains
- Free cash flow margin grew by 8.1 percentage points over the last five years, giving the company more chips to play with
At $203.83 per share, SPX Technologies trades at 3.8x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
HEICO (HEI)
One-Year Revenue Growth: +16.1%
Founded in 1957, HEICO (NYSE: HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.
Why Should You Buy HEI?
- Market share has increased this cycle as its 19.5% annual revenue growth over the last two years was exceptional
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 28.6% annually
- HEI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
HEICO is trading at $293.00 per share, or 49.5x 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
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum 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.
