2 Growth Stocks with Explosive Upside and 1 We Avoid

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. That said, here are two growth stocks with significant upside potential and one that could be down big.

One Growth Stock to Sell:

Newmark (NMRK)

One-Year Revenue Growth: +17.3%

Founded in 1929, Newmark (NASDAQ:NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.

Why Should You Dump NMRK?

1. 7.4% annual revenue growth over the last five years was slower than its consumer discretionary peers
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin for the last two years
3. Underwhelming 2.7% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $18.14 per share, Newmark trades at 11.7x forward P/E. Read our free research report to see why you should think twice about including NMRK in your portfolio.

Two Growth Stocks to Watch:

Doximity (DOCS)

One-Year Revenue Growth: +19.4%

With over 80% of U.S. physicians as members of its digital community, Doximity (NYSE:DOCS) operates a digital platform that enables physicians and other healthcare professionals to collaborate, stay current with medical news, manage their careers, and conduct virtual patient visits.

Why Do We Watch DOCS?

1. Average billings growth of 19.8% over the last year enhances its liquidity and shows there is steady demand for its products
2. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
3. Strong free cash flow margin of 48.7% enables it to reinvest or return capital consistently

Doximity is trading at $67.74 per share, or 21.1x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

Shift4 (FOUR)

One-Year Revenue Growth: +27.4%

Starting as a payment gateway provider in 1999 and now processing over $200 billion in annual payment volume, Shift4 Payments (NYSE:FOUR) provides integrated payment processing solutions and software that help businesses accept and manage transactions across in-store, online, and mobile channels.

Why Is FOUR a Good Business?

1. Annual revenue growth of 27.4% over the last two years was superb and indicates its market share increased during this cycle
2. Additional sales over the last two years increased its profitability as the 58.9% annual growth in its earnings per share outpaced its revenue

Shift4’s stock price of $91.44 implies a valuation ratio of 18.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

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 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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