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 with significant upside potential and one that could be down big.
One Growth Stock to Sell:
Lucid (LCID)
One-Year Revenue Growth: +45.9%
Founded by a former Tesla Vice President, Lucid Group (NASDAQ: LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.
Why Does LCID Worry Us?
- Negative 148% gross margin means it loses money on every sale and must pivot or scale quickly to survive
- Cash-burning history makes us doubt the long-term viability of its business model
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Lucid is trading at $12.60 per share, or 1.9x forward price-to-sales. Read our free research report to see why you should think twice about including LCID in your portfolio.
Two Growth Stocks to Buy:
Broadcom (AVGO)
One-Year Revenue Growth: +23.9%
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ: AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Why Are We Bullish on AVGO?
- Annual revenue growth of 33.6% over the past two years was outstanding, reflecting market share gains this cycle
- Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 76.4%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $357.13 per share, Broadcom trades at 40.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Moelis (MC)
One-Year Revenue Growth: +52.1%
Founded in 2007 by veteran banker Ken Moelis during the lead-up to the financial crisis, Moelis & Company (NYSE: MC) is an independent investment bank that provides strategic and financial advisory services to corporations, financial sponsors, governments, and sovereign wealth funds.
Why Will MC Beat the Market?
- Impressive 32.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 299% over the last two years outstripped its revenue performance
- Industry-leading 44.9% return on equity demonstrates management’s skill in finding high-return investments
Moelis’s stock price of $69.38 implies a valuation ratio of 23.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 Strong Momentum Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% 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
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