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.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. On that note, here are two growth stocks where the best is yet to come and one that could be down big.
One Growth Stock to Sell:
GXO Logistics (GXO)
One-Year Revenue Growth: +16.9%
With notable customers such as Nike and Apple, GXO (NYSE: GXO) manages outsourced supply chains and warehousing for various companies.
Why Does GXO Worry Us?
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Low returns on capital reflect management’s struggle to allocate funds effectively
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $53.55 per share, GXO Logistics trades at 18.1x forward P/E. If you’re considering GXO for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Watch:
Seagate Technology (STX)
One-Year Revenue Growth: +31.6%
The developer of the original 5.25inch hard disk drive, Seagate (NASDAQ: STX) is a leading producer of data storage solutions, including hard drives and Solid State Drives (SSDs) used in PCs and data centers.
Why Does STX Stand Out?
- Market share has increased this cycle as its 18.5% annual revenue growth over the last two years was exceptional
- Estimated revenue growth of 19.7% for the next 12 months implies its momentum over the last two years will continue
- Operating margin expansion of 6.9 percentage points over the last five years shows the company optimized its expenses
Seagate Technology’s stock price of $283.62 implies a valuation ratio of 23.7x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
StepStone Group (STEP)
One-Year Revenue Growth: +33.7%
Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ: STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.
Why Will STEP Beat the Market?
- Annual revenue growth of 32.5% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 41.4% over the last two years outstripped its revenue performance
StepStone Group is trading at $66.11 per share, or 28.4x 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 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% 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.
