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.
The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. Keeping that in mind, here are two growth stocks expanding their competitive advantages and one climbing an uphill battle.
One Growth Stock to Sell:
Root (ROOT)
One-Year Revenue Growth: +38.5%
Pioneering a data-driven approach that rewards good driving habits, Root (NASDAQ: ROOT) is a technology-driven auto insurance company that uses mobile apps to acquire customers and data science to price policies based on individual driving behavior.
Why Are We Wary of ROOT?
- Book value per share tumbled by 158% annually over the last five years, showing insurance sector trends are working against its favor during this cycle
- Negative return on equity shows that some of its growth strategies have backfired
Root’s stock price of $80.82 implies a valuation ratio of 4x forward P/B. Read our free research report to see why you should think twice about including ROOT in your portfolio.
Two Growth Stocks to Watch:
Monolithic Power Systems (MPWR)
One-Year Revenue Growth: +30.5%
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Why Will MPWR Beat the Market?
- Impressive 27.9% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 29.1% annually
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Monolithic Power Systems is trading at $895.24 per share, or 45x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Incyte (INCY)
One-Year Revenue Growth: +18.1%
Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ: INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.
Why Are We Positive On INCY?
- 15.5% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Share repurchases over the last five years enabled its annual earnings per share growth of 60.8% to outpace its revenue gains
- Free cash flow margin jumped by 5.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $106.17 per share, Incyte trades at 14x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
