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.

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 is one growth stock where the best is yet to come and two whose momentum may slow.

Two Growth Stocks to Sell:

American Express Global Business Travel (GBTG)

One-Year Revenue Growth: +30.2%

Originally spun off from American Express in 2014 but maintaining the Amex GBT brand, Global Business Travel Group (NYSE:GBTG) provides end-to-end business travel and expense management solutions, connecting corporate clients with travel suppliers and offering specialized software services.

Why Are We Wary of GBTG?

  1. Estimated sales growth of 7.8% for the next 12 months implies demand will slow from its two-year trend
  2. Bad unit economics and steep infrastructure costs are reflected in its gross margin of 58.5%, one of the worst among software companies
  3. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 3.8 percentage points

At $9.45 per share, American Express Global Business Travel trades at 1.4x forward price-to-sales. Check out our free in-depth research report to learn more about why GBTG doesn’t pass our bar.

Fastly (FSLY)

One-Year Revenue Growth: +20.4%

Taking its name from the core advantage it delivers to customers, Fastly (NASDAQ:FSLY) operates an edge cloud platform that processes, secures, and delivers web content as close to end users as possible, enabling faster digital experiences.

See also  KEYS Q2 Deep Dive: AI Demand and Segment Expansion Propel Growth, Guidance Tops Expectations

Why Is FSLY Not Exciting?

  1. Sales trends were unexciting over the last two years as its 13.7% annual growth was below the typical software company
  2. Gross margin of 61.5% reflects its relatively high servicing costs
  3. Historical operating margin losses point to an inefficient cost structure

Fastly is trading at $23.87 per share, or 5.3x forward price-to-sales. If you’re considering FSLY for your portfolio, see our FREE research report to learn more.

One Growth Stock to Watch:

PTC (PTC)

One-Year Revenue Growth: +19.5%

Originally known as Parametric Technology Corporation until its 2013 rebranding, PTC (NASDAQ:PTC) provides software that helps manufacturers design, develop, and service physical products through digital solutions for CAD, PLM, ALM, and SLM.

Why Are We Fans of PTC?

  1. Superior software functionality and low servicing costs result in a stellar gross margin of 84.5%
  2. Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
  3. Excellent operating margin of 37.8% highlights the efficiency of its business model, and its profits increased over the last year as it scaled

PTC’s stock price of $152.71 implies a valuation ratio of 6x forward price-to-sales. 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

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 this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

See also  TJX (NYSE:TJX) Posts Q2 CY2026 Sales In Line With Estimates

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.


Source link