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2 Growth Stocks Set to Flourishand 1 Facing Headwinds

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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. Keeping that in mind, here are two growth stocks where the best is yet to come and one whose momentum may slow.

One Growth Stock to Sell:

Select Medical (SEM)

One-Year Revenue Growth: +15%

With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE: SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.

Why Do We Pass on SEM?

  1. Declining admissions over the past two years indicate demand is soft and that the company may need to revise its strategy
  2. Forecasted revenue decline of 4.5% for the upcoming 12 months implies demand will fall even further
  3. Incremental sales over the last five years were much less profitable as its earnings per share fell by 3.4% annually while its revenue grew

Select Medical’s stock price of $12.93 implies a valuation ratio of 11x forward P/E. Dive into our free research report to see why there are better opportunities than SEM.

Two Growth Stocks to Watch:

Workiva (WK)

One-Year Revenue Growth: +19%

Nicknamed "the Excel killer" by some finance professionals for its ability to eliminate spreadsheet chaos, Workiva (NYSE: WK) provides a cloud-based platform that enables organizations to streamline financial reporting, ESG, and compliance processes with connected data and automation.

Why Does WK Stand Out?

  1. Winning new contracts that can potentially increase in value as its billings growth has averaged 23.2% over the last year
  2. Customers use its software daily and increase their spending every year, as seen in its 112% net revenue retention rate
  3. Prominent and differentiated software results in a premier gross margin of 76.8%

At $76.46 per share, Workiva trades at 4.6x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Marvell Technology (MRVL)

One-Year Revenue Growth: +21.6%

Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.

Why Do We Like MRVL?

  1. Market share has increased this cycle as its 18.9% annual revenue growth over the last five years was exceptional
  2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 31.9%
  3. Incremental sales over the last five years have been more profitable as its earnings per share increased by 23.5% annually, topping its revenue gains

Marvell Technology is trading at $71.11 per share, or 24x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 6 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 Comfort Systems (+782% 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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