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 facing an uphill battle.
One Growth Stock to Sell:
Artivion (AORT)
One-Year Revenue Growth: +17.6%
Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE: AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease.
Why Are We Cautious About AORT?
- Revenue base of $458.7 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Poor free cash flow margin of -0.7% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Low returns on capital reflect management’s struggle to allocate funds effectively
Artivion’s stock price of $23.09 implies a valuation ratio of 44.2x forward P/E. To fully understand why you should be careful with AORT, check out our full research report (it’s free).
Two Growth Stocks to Watch:
Workiva (WK)
One-Year Revenue Growth: +20.3%
Nicknamed "the Excel killer" by some finance professionals for its ability to eliminate spreadsheet chaos, Workiva (NYSE: WK) provides a cloud-based platform that enables organizations to streamline financial reporting, ESG, and compliance processes with connected data and automation.
Why Could WK Be a Winner?
- Customers view its software as mission-critical to their operations as its ARR has averaged 22.1% growth over the last year
- Software is difficult to replicate at scale and leads to a stellar gross margin of 79.4%
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Workiva is trading at $50.80 per share, or 2.6x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
Nextpower (NXT)
One-Year Revenue Growth: +20.3%
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextpower (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Should You Buy NXT?
- Annual revenue growth of 19.3% over the last two years was superb and indicates its market share increased during this cycle
- Free cash flow margin jumped by 25.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Returns on capital are climbing as management makes more lucrative bets
At $117.50 per share, Nextpower trades at 25.6x forward P/E. Is now a good time to buy? Find out in our full 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 (+1,326% between June 2020 and June 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.
