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.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. That said, here are two growth stocks with significant upside potential and one whose momentum may slow.
One Growth Stock to Sell:
Viavi Solutions (VIAV)
One-Year Revenue Growth: +40%
Once known as JDS Uniphase before its 2015 rebranding, Viavi Solutions (NASDAQ: VIAV) provides testing, monitoring and assurance solutions for telecommunications, cloud, enterprise, military, and other critical networks and infrastructure.
Why Does VIAV Fall Short?
- 4.8% annual revenue growth over the last five years was slower than its industrials peers
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 7.4 percentage points
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $47.30 per share, Viavi Solutions trades at 27.3x forward P/E. Dive into our free research report to see why there are better opportunities than VIAV.
Two Growth Stocks to Buy:
American Superconductor (AMSC)
One-Year Revenue Growth: +25.9%
Founded in 1987, American Superconductor (NASDAQ: AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
Why Will AMSC Beat the Market?
- Market share has increased this cycle as its 43.6% annual revenue growth over the last two years was exceptional
- Free cash flow margin jumped by 25.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
American Superconductor’s stock price of $30.14 implies a valuation ratio of 28.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Eli Lilly (LLY)
One-Year Revenue Growth: +49.6%
Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.
Why Is LLY a Good Business?
- Annual revenue growth of 43.1% over the last two years was superb and indicates its market share increased during this cycle
- Adjusted operating margin improvement of 18.7 percentage points over the last two years demonstrates its ability to scale efficiently
- Share repurchases over the last five years enabled its annual earnings per share growth of 31.4% to outpace its revenue gains
Eli Lilly is trading at $1,144 per share, or 27.6x forward P/E. Is now a good time to buy? Find out in our full 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
