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. Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. Keeping that in mind, here are two growth stocks where the best is yet to come and one whose momentum may slow. One Growth Stock to Sell: EverQuote (EVER) One-Year Revenue Growth: +113% Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers Why Does EVER Fall Short? Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend EverQuote is trading at $23.58 per share, or 11x forward EV/EBITDA. If you’re considering EVER for your portfolio, see our FREE research report to learn more. Two Growth Stocks to Watch: SentinelOne (S) One-Year Revenue Growth: +32.2% With roots in the Israeli cyber intelligence community, SentinelOne (NYSE:S) provides software to help organizations efficiently detect, prevent, and investigate cyber attacks. Why Could S Be a Winner? Customers view its software as mission-critical to their operations as its ARR has averaged 30.9% growth over the last year Expected revenue growth of 22.9% for the next year suggests its market share will rise Free cash flow margin is expected to increase by 7.5 percentage points next year, suggesting the company will have more capital to invest or return to shareholders At $19.43 per share, SentinelOne trades at 6.2x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free. Freshworks (FRSH) One-Year Revenue Growth: +20.5% Founded in Chennai, India in 2010 with the idea of creating a “fresh” helpdesk product, Freshworks (NASDAQ: FRSH) offers a broad range of software targeted at small and medium-sized businesses. Why Do We Like FRSH? ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability Prominent and differentiated software leads to a stellar gross margin of 84.4% Operating margin expanded by 9.2 percentage points over the last year as it scaled and became more efficient Freshworks’s stock price of $14.71 implies a valuation ratio of 5.3x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free. Story Continues 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 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. View Comments
2 Growth Stocks with All-Star Potential and 1 to Question
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