Financial News
1 Growth Stock with All-Star Potential and 2 to Keep Off Your Radar
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. On that note, here is one growth stock expanding its competitive advantage and two whose momentum may slow.
Two Growth Stocks to Sell:
Owens Corning (OC)
One-Year Revenue Growth: +19.7%
Credited with the discovery of fiberglass, Owens Corning (NYSE: OC) supplies building and construction materials to the United States and international markets.
Why Does OC Worry Us?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Estimated sales decline of 6.7% for the next 12 months implies a challenging demand environment
- Free cash flow margin shrank by 4.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Owens Corning is trading at $132.63 per share, or 8.9x forward P/E. Dive into our free research report to see why there are better opportunities than OC.
Tandem Diabetes (TNDM)
One-Year Revenue Growth: +27.7%
With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ: TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels.
Why Do We Steer Clear of TNDM?
- Disappointing pump shipments over the past two years indicate demand is soft and that the company may need to revise its strategy
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 42.6% annually
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $20.27 per share, Tandem Diabetes trades at 34.4x forward EV-to-EBITDA. To fully understand why you should be careful with TNDM, check out our full research report (it’s free).
One Growth Stock to Watch:
Boston Scientific (BSX)
One-Year Revenue Growth: +19.4%
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Does BSX Catch Our Eye?
- Average organic revenue growth of 14.9% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Forecasted revenue growth of 14.4% for the next 12 months indicates its momentum over the last two years is sustainable
Boston Scientific’s stock price of $102.09 implies a valuation ratio of 34.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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 Growth Stocks for this month. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
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