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.
The risks that can come from buying these assets are 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 is one growth stock where the best is yet to come and two facing an uphill battle.
Two Growth Stocks to Sell:
Laureate Education (LAUR)
One-Year Revenue Growth: +17.9%
Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ: LAUR) is a global network of higher education institutions.
Why Do We Pass on LAUR?
- Demand for its offerings was relatively low as its number of enrolled students has underwhelmed
- Projected 1.7 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $38.13 per share, Laureate Education trades at 17.1x forward P/E. If you’re considering LAUR for your portfolio, see our FREE research report to learn more.
Enova (ENVA)
One-Year Revenue Growth: +17.7%
Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International (NYSE: ENVA) provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.
Why Do We Think Twice About ENVA?
- Incremental sales over the last five years were less profitable as its 8.8% annual earnings per share growth lagged its revenue gains
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Enova’s stock price of $178.82 implies a valuation ratio of 9.5x forward P/E. To fully understand why you should be careful with ENVA, check out our full research report (it’s free).
One Growth Stock to Buy:
Everpure (P)
One-Year Revenue Growth: +27.2%
Founded in 2009 as a pioneer in enterprise all-flash storage technology, Everpure (NYSE: P) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.
Why Should You Buy P?
- ARR trends over the past two years show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Projected revenue growth of 38% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share grew by 54.2% annually over the last five years and trumped its peers
Everpure is trading at $153.61 per share, or 45.1x forward P/E. 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 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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.
