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.
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. Keeping that in mind, here are two growth stocks expanding their competitive advantages and one facing an uphill battle.
One Growth Stock to Sell:
Supernus Pharmaceuticals (SUPN)
One-Year Revenue Growth: +25.8%
With a diverse portfolio of eight FDA-approved medications targeting neurological conditions, Supernus Pharmaceuticals (NASDAQ: SUPN) develops and markets treatments for central nervous system disorders including epilepsy, ADHD, Parkinson's disease, and migraine.
Why Are We Out on SUPN?
- Muted 6.5% annual revenue growth over the last five years shows its demand lagged behind its healthcare peers
- Revenue base of $822.8 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Free cash flow margin dropped by 16.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Supernus Pharmaceuticals’s stock price of $42.69 implies a valuation ratio of 2.7x forward price-to-sales. If you’re considering SUPN for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Watch:
Atlassian (TEAM)
One-Year Revenue Growth: +26%
Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ: TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.
Why Does TEAM Stand Out?
- Annual revenue growth of 22.8% over the last two years was superb and indicates its market share is rising
- Billings growth has averaged 20.5% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Prominent and differentiated software results in a best-in-class gross margin of 85.6%
At $187.50 per share, Atlassian trades at 6.6x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
The Ensign Group (ENSG)
One-Year Revenue Growth: +20%
Founded in 1999 and named after a naval term for a flag-bearing ship, The Ensign Group (NASDAQ: ENSG) operates skilled nursing facilities, senior living communities, and rehabilitation services across 15 states, primarily serving high-acuity patients recovering from various medical conditions.
Why Could ENSG Be a Winner?
- Annual revenue growth of 19.1% over the last two years was superb and indicates its market share increased during this cycle
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Earnings per share grew by 13.9% annually over the last five years, massively outpacing its peers
The Ensign Group is trading at $175.10 per share, or 21.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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.
