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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. On that note, here are two growth stocks where the best is yet to come and one whose momentum may slow.
One Growth Stock to Sell:
nLIGHT (LASR)
One-Year Revenue Growth: +40.9%
Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ:LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors.
Why Does LASR Give Us Pause?
・Sales trends were unexciting over the last five years as its 3.8% annual growth was below the typical industrials company
・Historical operating margin losses point to an inefficient cost structure
・Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
At $74.84 per share, nLIGHT trades at 146.1x forward P/E. If you’re considering LASR for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Buy:
Samsara (IOT)
One-Year Revenue Growth: +29.6%
From sensors on vehicles to AI-powered cameras that help prevent accidents, Samsara (NYSE:IOT) is a cloud-based Internet of Things platform that helps businesses improve the safety, efficiency, and sustainability of their physical operations.
What Makes IOT Stand Out?
・ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
・Estimated revenue growth of 21.4% for the next 12 months implies its momentum over the last two years will continue
・Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Samsara is trading at $36.16 per share, or 10.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
FuelCell Energy (FCEL)
One-Year Revenue Growth: +29.7%
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
Why Do We Love FCEL?
・Impressive 38.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
・Earnings per share grew by 40.6% annually over the last two years and trumped its peers
・Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day
FuelCell Energy’s stock price of $21.81 implies a valuation ratio of 5x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.
