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. That said, here are two growth stocks with significant upside potential and one facing an uphill battle.
One Growth Stock to Sell:
SouthState (SSB)
One-Year Revenue Growth: +25.2%
With roots dating back to the Great Depression era of 1933, SouthState (NYSE: SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.
Why Does SSB Fall Short?
- Estimated net interest income growth of 3.4% for the next 12 months implies demand will slow from its five-year trend
- Anticipated 2.6 percentage point rise in its efficiency ratio suggests its expenses will increase as a percentage of revenue
- Incremental sales over the last five years were less profitable as its 6.5% annual earnings per share growth lagged its revenue gains
At $105.73 per share, SouthState trades at 1.1x forward P/B. Read our free research report to see why you should think twice about including SSB in your portfolio.
Two Growth Stocks to Watch:
Celsius (CELH)
One-Year Revenue Growth: +82.9%
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Why Does CELH Stand Out?
- Remarkable 47.4% revenue growth over the last three years demonstrates its ability to capture significant market share
- Earnings per share grew by 91.4% annually over the last three years, massively outpacing its peers
- Strong free cash flow margin of 14.3% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
Celsius is trading at $27.83 per share, or 19.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Charles Schwab (SCHW)
One-Year Revenue Growth: +20.3%
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 Is SCHW a Top Pick?
- Market share has increased this cycle as its 18.6% annual revenue growth over the last two years was exceptional
- Share repurchases over the last two years enabled its annual earnings per share growth of 40.3% to outpace its revenue gains
- ROE punches in at 15.6%, illustrating management’s expertise in identifying profitable investments
Charles Schwab’s stock price of $106.59 implies a valuation ratio of 14.8x forward P/E. Is now the time to initiate a position? Find out in our full 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
