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. Keeping that in mind, here are two growth stocks where the best is yet to come and one facing an uphill battle.
One Growth Stock to Sell:
Repligen (RGEN)
One-Year Revenue Growth: +16.5%
With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ: RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.
Why Do We Think RGEN Will Underperform?
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 16.2 percentage points
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $167.17 per share, Repligen trades at 72.6x forward P/E. Read our free research report to see why you should think twice about including RGEN in your portfolio.
Two Growth Stocks to Buy:
Sezzle (SEZL)
One-Year Revenue Growth: +43.1%
Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle (NASDAQ: SEZL) provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers.
Why Do We Love SEZL?
- Market share has increased this cycle as its 66.1% annual revenue growth over the last two years was exceptional
- Earnings per share grew by 22.7% annually over the last two years, massively outpacing its peers
- Industry-leading 16.4% return on equity demonstrates management’s skill in finding high-return investments
Sezzle’s stock price of $125.97 implies a valuation ratio of 21.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
HCI Group (HCI)
One-Year Revenue Growth: +22.8%
Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE: HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.
What Makes HCI Stand Out?
- Net premiums earned expanded by 15.5% annually over the last two years, demonstrating exceptional market penetration this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 36.3% over the last two years outstripped its revenue performance
- Annual book value per share growth of 42.4% over the last two years was superb and indicates its capital strength increased during this cycle
HCI Group is trading at $183.38 per share, or 1.9x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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 Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
