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. Keeping that in mind, here are two growth stocks expanding their competitive advantages and one whose momentum may slow.
One Growth Stock to Sell:
Roku (ROKU)
One-Year Revenue Growth: +17.3%
With a name meaning six in Japanese because it was the founder's sixth company that he started, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.
Why Are We Cautious About ROKU?
- Platform monetization efforts took a back seat over the last two years as it focused on growing its users
- Bad unit economics and steep infrastructure costs are reflected in its low gross margin of 44.5%
- Performance over the past three years was negatively impacted by new share issuances as its earnings per share grew slower than its revenue
At $99.76 per share, Roku trades at 35.4x forward EV/EBITDA. If you’re considering ROKU for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Buy:
Remitly (RELY)
One-Year Revenue Growth: +35.1%
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Will RELY Beat the Market?
- Active Customers are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 76.4% annually, topping its revenue gains
- Free cash flow margin grew by 33.7 percentage points over the last few years, giving the company more chips to play with
Remitly’s stock price of $16.66 implies a valuation ratio of 15.1x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Oscar Health (OSCR)
One-Year Revenue Growth: +48.3%
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Do We Love OSCR?
- Impressive 47% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Adjusted operating margin improvement of 33.5 percentage points over the last five years demonstrates its ability to scale efficiently
- Earnings per share grew by 19.3% annually over the last four years, massively outpacing its peers
Oscar Health is trading at $18.85 per share, or 124.2x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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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