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.
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 with significant upside potential and one whose momentum may slow.
One Growth Stock to Sell:
EVgo (EVGO)
One-Year Revenue Growth: +49.1%
Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ: EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.
Why Does EVGO Worry Us?
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
- Cash-burning history makes us doubt the long-term viability of its business model
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
EVgo’s stock price of $4.01 implies a valuation ratio of 31.8x forward EV-to-EBITDA. If you’re considering EVGO for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Watch:
Globus Medical (GMED)
One-Year Revenue Growth: +17.4%
With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE: GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.
Why Does GMED Stand Out?
- Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
- Projected revenue growth of 14.3% for the next 12 months suggests its momentum from the last two years will persist
- Earnings per share have massively outperformed its peers over the last five years, increasing by 20.2% annually
At $61.75 per share, Globus Medical trades at 18.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Charles Schwab (SCHW)
One-Year Revenue Growth: +22.3%
Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE: SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.
Why Does SCHW Catch Our Eye?
- Market share has increased this cycle as its 17.8% annual revenue growth over the last five years was exceptional
- Earnings per share have outperformed the peer group average over the last five years, increasing by 14.5% annually
- ROE punches in at 13.9%, illustrating management’s expertise in identifying profitable investments
Charles Schwab is trading at $94.80 per share, or 17.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
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