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.

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 expanding their competitive advantages and one that could be down big.

One Growth Stock to Sell:

Boeing (BA)

One-Year Revenue Growth: +34.5%

One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.

Why Are We Cautious About BA?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 7.2% for the last two years
2. Poor expense management has led to operating margin losses
3. Cash burn makes us question whether it can achieve sustainable long-term growth

At $227.35 per share, Boeing trades at 873.7x forward P/E. Check out our free in-depth research report to learn more about why BA doesn’t pass our bar.

Two Growth Stocks to Buy:

Quanta (PWR)

One-Year Revenue Growth: +20.3%

A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.

Why Are We Bullish on PWR?

1. Demand is greater than supply as the company’s 18% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
2. Market share will likely rise over the next 12 months as its expected revenue growth of 17.6% is robust
3. Earnings per share grew by 22.4% annually over the last two years and trumped its peers

Quanta’s stock price of $569.50 implies a valuation ratio of 43.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Reddit (RDDT)

One-Year Revenue Growth: +69.4%

Founded in 2005 by two University of Virginia roommates, Reddit (NYSE:RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.

Why Do We Love RDDT?

1. Domestic Daily Active Visitors are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
2. Strong engagement trends coupled with 45.1% annual growth in its average revenue per user demonstrate its platform’s stickiness with die-hard customers
3. Robust free cash flow margin of 25.7% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute

Reddit is trading at $147.91 per share, or 20.4x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.