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 whose momentum may slow.
One Growth Stock to Sell:
FuelCell Energy (FCEL)
One-Year Revenue Growth: +78.8%
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
Why Are We Hesitant About FCEL?
- 4.3% annual revenue growth over the last two years was slower than its industrials peers
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $7.27 per share, FuelCell Energy trades at 1x forward price-to-sales. Read our free research report to see why you should think twice about including FCEL in your portfolio.
Two Growth Stocks to Watch:
Waste Management (WM)
One-Year Revenue Growth: +15.9%
Headquartered in Houston, Waste Management (NYSE: WM) is a provider of comprehensive waste management services in North America.
Why Are We Fans of WM?
- Annual revenue growth of 10.9% over the last two years was superb and indicates its market share increased during this cycle
- Superior product capabilities and pricing power result in a premier gross margin of 38.7%
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 17.2%
Waste Management is trading at $201.48 per share, or 25x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
NBT Bancorp (NBTB)
One-Year Revenue Growth: +16.9%
Tracing its roots back to 1856 when it first opened its doors in Norwich, New York, NBT Bancorp (NASDAQ: NBTB) is a community-oriented financial institution providing banking, wealth management, and insurance services to individuals and businesses across the northeastern United States.
Why Does NBTB Stand Out?
- Market share is on track to rise over the next 12 months as its 16.6% projected net interest income growth implies demand will accelerate from its five-year trend
- Net interest margin grew by 22 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more chips to play with
- Earnings growth has comfortably beaten the peer group average over the last two years as its EPS has compounded at 1.8% annually
NBT Bancorp’s stock price of $40.53 implies a valuation ratio of 1.1x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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