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. On that note, here is one growth stock where the best is yet to come and two that could be down big.
Two Growth Stocks to Sell:
Elastic (ESTC)
One-Year Revenue Growth: +17.3%
Built on the powerful open-source Elasticsearch technology that powers search functionality for thousands of websites worldwide, Elastic (NYSE: ESTC) provides a search and AI platform that helps organizations find insights from their data, monitor applications, and protect against security threats.
Why Do We Think Twice About ESTC?
- Estimated sales growth of 14.6% for the next 12 months implies demand will slow from its two-year trend
- Efficient onboarding process gets customers to spend money faster and frees the company to focus on product enhancements
- Operating margin expanded by 1.8 percentage points over the last year as it scaled and became more efficient
Elastic is trading at $62.32 per share, or 3.3x forward price-to-sales. If you’re considering ESTC for your portfolio, see our FREE research report to learn more.
Supernus Pharmaceuticals (SUPN)
One-Year Revenue Growth: +20.4%
With a diverse portfolio of eight FDA-approved medications targeting neurological conditions, Supernus Pharmaceuticals (NASDAQ: SUPN) develops and markets treatments for central nervous system disorders including epilepsy, ADHD, Parkinson's disease, and migraine.
Why Are We Cautious About SUPN?
- Muted 5.9% annual revenue growth over the last five years shows its demand lagged behind its healthcare peers
- Smaller revenue base of $776.9 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $46.69 per share, Supernus Pharmaceuticals trades at 19.6x forward P/E. Dive into our free research report to see why there are better opportunities than SUPN.
One Growth Stock to Buy:
Shopify (SHOP)
One-Year Revenue Growth: +31.8%
Starting with just three people selling snowboards online in 2004, Shopify (NASDAQ: SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
What Makes SHOP Stand Out?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 32.3% over the last year
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Shopify’s stock price of $125.79 implies a valuation ratio of 10.4x forward price-to-sales. Is now a good time to buy? See for yourself 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.
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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
