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 whose momentum may slow.
One Growth Stock to Sell:
nLIGHT (LASR)
One-Year Revenue Growth: +40.9%
Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ: LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors.
Why Does LASR Give Us Pause?
- Sales trends were unexciting over the last five years as its 3.8% annual growth was below the typical industrials company
- Historical operating margin losses point to an inefficient cost structure
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
At $74.84 per share, nLIGHT trades at 146.1x forward P/E. If you’re considering LASR for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Buy:
Samsara (IOT)
One-Year Revenue Growth: +29.6%
From sensors on vehicles to AI-powered cameras that help prevent accidents, Samsara (NYSE: IOT) is a cloud-based Internet of Things platform that helps businesses improve the safety, efficiency, and sustainability of their physical operations.
What Makes IOT Stand Out?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Estimated revenue growth of 21.4% for the next 12 months implies its momentum over the last two years will continue
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Samsara is trading at $36.16 per share, or 10.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
FuelCell Energy (FCEL)
One-Year Revenue Growth: +29.7%
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
Why Do We Love FCEL?
- Impressive 38.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings per share grew by 40.6% annually over the last two years and trumped its peers
- Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day
FuelCell Energy’s stock price of $21.81 implies a valuation ratio of 5x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
