2 Growth Stocks with All-Star Potential and 1 Facing Headwinds
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. On that note, here are two growth stocks where the best is yet to come and one whose momentum may slow.
One Growth Stock to Sell:
NESR (NESR)
One-Year Revenue Growth: +23.5%
Operating across 16 countries from Algeria to Indonesia, NESR (NASDAQ:NESR) provides oilfield services like hydraulic fracturing, cementing, and drilling to oil and gas companies.
Why Does NESR Worry Us?
- Smaller revenue base of $1.62 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Gross margin of 12.8% is below its competitors, leaving less money to invest in exploration and production
- Costs have risen faster than its revenue over the last five years, causing its EBITDA margin to decline by 74.1 percentage points
At $19.29 per share, NESR trades at 9.6x forward P/E. Dive into our free research report to see why there are better opportunities than NESR.
Two Growth Stocks to Buy:
Shopify (SHOP)
One-Year Revenue Growth: +32.5%
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.
Why Should You Buy SHOP?
- Billings growth has averaged 33.1% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Notable projected revenue growth of 28.3% for the next 12 months hints at market share gains
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Shopify is trading at $177.13 per share, or 13.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Pinterest (PINS)
One-Year Revenue Growth: +16.6%
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Why Is PINS a Good Business?
- Monthly Active Users have grown by 11% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Additional sales over the last three years increased its profitability as the 36.4% annual growth in its earnings per share outpaced its revenue
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
Pinterest’s stock price of $22.51 implies a valuation ratio of 15.8x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.