Growth is oxygen. But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.
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 where the best is yet to come and one whose momentum may slow.
One Growth Stock to Sell:
JFrog (FROG)
One-Year Revenue Growth: +22%
Named after the amphibian that continuously evolves from egg to tadpole to adult, JFrog (NASDAQ:FROG) provides a platform that helps organizations securely create, store, manage, and distribute software packages across any system.
Why Are We Wary of FROG?
- Historical operating margin losses show it had an inefficient cost structure while scaling
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 8.9 percentage points over the next year
JFrog’s stock price of $47 implies a valuation ratio of 9.9x forward price-to-sales. To fully understand why you should be careful with FROG, check out our full research report (it’s free).
Two Growth Stocks to Buy:
Insulet (PODD)
One-Year Revenue Growth: +26%
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ:PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
Why Are We Backing PODD?
- Constant currency growth averaged 26.4% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Free cash flow margin jumped by 25.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Rising returns on capital show management is finding more attractive investment opportunities
Insulet is trading at $328.22 per share, or 69.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Houlihan Lokey (HLI)
One-Year Revenue Growth: +23.3%
Founded in 1972 and known for its expertise in complex financial situations, Houlihan Lokey (NYSE:HLI) is a global investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory services.
Why Is HLI a Top Pick?
- Annual revenue growth of 17.2% over the last five years was superb and indicates its market share increased during this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 29% outpaced its revenue gains
- Annual tangible book value per share growth of 43.7% over the last two years was superb and indicates its capital strength increased during this cycle
At $192.02 per share, Houlihan Lokey trades at 25.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
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-small-cap company Exlservice (+354% 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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