
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. Keeping that in mind, here are two growth stocks where the best is yet to come and one climbing an uphill battle.
One Growth Stock to Sell:
Novavax (NVAX)
One-Year Revenue Growth: +20.3%
Pioneering a nanoparticle technology that mimics the molecular structure of disease pathogens, Novavax (NASDAQ: NVAX) develops and commercializes protein-based vaccines for infectious diseases, with a primary focus on its COVID-19 vaccine and combination respiratory vaccine candidates.
Why Are We Hesitant About NVAX?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Forecasted revenue decline of 46.8% for the upcoming 12 months implies demand will fall off a cliff
- Free cash flow margin dropped by 73.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
At $7.85 per share, Novavax trades at 2.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than NVAX.
Two Growth Stocks to Watch:
Netflix (NFLX)
One-Year Revenue Growth: +15.4%
Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.
Why Are We Positive On NFLX?
- Has the opportunity to boost monetization through new features and premium offerings as its global streaming paid memberships have grown by 14.2% annually over the last two years
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin jumped by 18.4 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Netflix is trading at $88.29 per share, or 2.6x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
TTM Technologies (TTMI)
One-Year Revenue Growth: +17.9%
As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ: TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.
Why Should TTMI Be on Your Watchlist?
- Market share has increased this cycle as its 10.5% annual revenue growth over the last two years was exceptional
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Earnings per share grew by 32.4% annually over the last two years, massively outpacing its peers
TTM Technologies’s stock price of $101.61 implies a valuation ratio of 34.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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.