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.
The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here are two growth stocks expanding their competitive advantages and one that could be down big.
One Growth Stock to Sell:
Flywire (FLYW)
One-Year Revenue Growth: +22.2%
Initially created to solve the challenges of international student tuition payments, Flywire (NASDAQ: FLYW) provides specialized payment processing and software solutions that help educational institutions, healthcare systems, travel companies, and businesses manage complex payments.
Why Does FLYW Give Us Pause?
- Steep infrastructure costs and weaker unit economics for a software company are reflected in its low gross margin of 62.9%
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- Historical operating margin losses show it had an inefficient cost structure while scaling
Flywire’s stock price of $12.95 implies a valuation ratio of 2.5x forward price-to-sales. Check out our free in-depth research report to learn more about why FLYW doesn’t pass our bar.
Two Growth Stocks to Watch:
BioMarin Pharmaceutical (BMRN)
One-Year Revenue Growth: +18.4%
Pioneering treatments for conditions that often had no previous therapeutic options, BioMarin Pharmaceutical (NASDAQ: BMRN) develops and commercializes therapies that address the root causes of rare genetic disorders, particularly those affecting children.
Why Does BMRN Stand Out?
- Market share has increased this cycle as its 17.1% annual revenue growth over the last two years was exceptional
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 22.2% outpaced its revenue gains
- Free cash flow margin grew by 13.6 percentage points over the last five years, giving the company more chips to play with
BioMarin Pharmaceutical is trading at $57.20 per share, or 12.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
IonQ (IONQ)
One-Year Revenue Growth: +67.8%
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Will IONQ Outperform?
- Impressive 78.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Negative free cash flow margin has improved over the last five years, showing the company is one step closer to financial self-sufficiency
At $42.16 per share, IonQ trades at 78.8x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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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