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.
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 with significant upside potential and one whose momentum may slow.
One Growth Stock to Sell:
Golar LNG (GLNG)
One-Year Revenue Growth: +54%
Pioneering a way to monetize stranded gas reserves that would otherwise be uneconomical to develop, Golar LNG (NASDAQ:GLNG) converts ships into floating liquefied natural gas facilities that liquefy natural gas at offshore sites.
Why Does GLNG Worry Us?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.7% annually over the last five years
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Golar LNG is trading at $56.11 per share, or 70.5x forward P/E. If you’re considering GLNG for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Watch:
Intuit (INTU)
One-Year Revenue Growth: +17.2%
Originally named after its founding product "Intuitive for the first-time user," Intuit (NASDAQ:INTU) provides financial management software and services including TurboTax, QuickBooks, Credit Karma, and Mailchimp to help consumers and small businesses manage their finances.
Why Could INTU Be a Winner?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 17.6% over the last year
- Excellent operating margin of 27.1% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last year
- Strong free cash flow margin of 34% enables it to reinvest or return capital consistently
At $408.05 per share, Intuit trades at 5x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
The Ensign Group (ENSG)
One-Year Revenue Growth: +24%
Founded in 1999 and named after a naval term for a flag-bearing ship, The Ensign Group (NASDAQ:ENSG) operates skilled nursing facilities, senior living communities, and rehabilitation services across 15 states, primarily serving high-acuity patients recovering from various medical conditions.
Why Are We Positive On ENSG?
- Annual revenue growth of 19.3% over the past two years was outstanding, reflecting market share gains this cycle
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Earnings per share have massively outperformed its peers over the last five years, increasing by 16.4% annually
The Ensign Group’s stock price of $182.11 implies a valuation ratio of 23.6x forward P/E. Is now the right time to buy? Find out in our full 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.