2 Growth Stocks Set to Flourishand 1 We Turn Down

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.

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 where the best is yet to come and one that could be down big.

One Growth Stock to Sell:

Rocket Lab (RKLB)

One-Year Revenue Growth: +54.4%

Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ:RKLB) offers rockets designed for launching small satellites.

Why Does RKLB Fall Short?

1. Historically negative EPS casts doubt for cautious investors and clouds its long-term earnings prospects
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Rocket Lab’s stock price of $55.74 implies a valuation ratio of 40.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than RKLB.

Two Growth Stocks to Watch:

CAVA (CAVA)

One-Year Revenue Growth: +28.2%

Starting from a single Washington, D.C. location, CAVA (NYSE:CAVA) operates a fast-casual restaurant chain offering customizable Mediterranean-inspired dishes.

Why Is CAVA on Our Radar?

1. Same-store sales growth averaged 11.8% over the past two years, showing it’s bringing new and repeat diners into its restaurants
2. Earnings per share grew by 200% annually over the last one years and trumped its peers
3. Free cash flow margin grew by 3.1 percentage points over the last year, giving the company more chips to play with

At $63.42 per share, CAVA trades at 101.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

AAR (AIR)

One-Year Revenue Growth: +17.6%

The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE:AIR) is a provider of aircraft maintenance services

Why Do We Like AIR?

1. Annual revenue growth of 16.8% over the past two years was outstanding, reflecting market share gains this cycle
2. Earnings growth has trumped its peers over the last five years as its EPS has compounded at 18.9% annually

AAR is trading at $82 per share, or 17.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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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