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. 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 where the best is yet to come and one that could be down big. One Growth Stock to Sell: EVgo (EVGO) One-Year Revenue Growth: +45.1% Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States. Why Does EVGO Fall Short? Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential Cash-burning tendencies make us wonder if it can sustainably generate shareholder value Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution EVgo’s stock price of $3.87 implies a valuation ratio of 32.7x forward EV-to-EBITDA. If you’re considering EVGO for your portfolio, see our FREE research report to learn more. Two Growth Stocks to Watch: Coinbase (COIN) One-Year Revenue Growth: +75.2% Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions. Why Will COIN Outperform? Monetization efforts are paying off as its average revenue per user has grown by 61.5% annually over the last two years Incremental sales significantly boosted profitability as its annual earnings per share growth of 98.1% over the last two years outstripped its revenue performance Strong free cash flow margin of 25.9% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety Coinbase is trading at $260.01 per share, or 20.7x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free. Molina Healthcare (MOH) One-Year Revenue Growth: +16.8% Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states. Why Are We Fans of MOH? Annual revenue growth of 19.4% over the last five years was superb and indicates its market share increased during this cycle Large revenue base of $41.87 billion gives it power over healthcare providers and plan holders Earnings per share grew by 14.6% annually over the last five years, massively outpacing its peers Story Continues At $325.34 per share, Molina Healthcare trades at 12.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free. Stocks We Like Even More The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. View Comments
2 Growth Stocks to Stash and 1 to Ignore
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