Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.

Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. 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:

Guardant Health (GH)

One-Year Revenue Growth: +28.2%

Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health (NASDAQ: GH) develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies.

Why Does GH Give Us Pause?

1. Earnings per share fell by 23.7% annually over the last five years while its revenue grew, partly because it diluted shareholders
2. Negative free cash flow raises questions about the return timeline for its investments
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $38.60 per share, Guardant Health trades at 5.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than GH.

Two Growth Stocks to Buy:

Broadcom (AVGO)

One-Year Revenue Growth: +40.3%

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 Do We Love AVGO?

1. Market share has increased this cycle as its 25.9% annual revenue growth over the last two years was exceptional
2. Offerings are mission-critical for businesses and lead to a best-in-class gross margin of 75.4%
3. Robust free cash flow margin of 41.9% gives it many options for capital deployment

Broadcom’s stock price of $240 implies a valuation ratio of 36.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Monolithic Power Systems (MPWR)

One-Year Revenue Growth: +30.6%

Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.

Why Are We Backing MPWR?

1. Annual revenue growth of 13.1% over the last two years was superb and indicates its market share increased during this cycle
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Monolithic Power Systems is trading at $675.12 per share, or 39.7x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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.