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. Keeping that in mind, here are two growth stocks where the best is yet to come and one climbing an uphill battle.
One Growth Stock to Sell:
Analog Devices (ADI)
One-Year Revenue Growth: +16.9%
Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.
Why Do We Think Twice About ADI?
- Annual sales declines of 5.4% for the past two years show its products and services struggled to connect with the market during this cycle
- Underwhelming 5.9% return on capital reflects management’s difficulties in finding profitable growth opportunities
Analog Devices is trading at $299.14 per share, or 29.6x forward P/E. Check out our free in-depth research report to learn more about why ADI doesn’t pass our bar.
Two Growth Stocks to Watch:
Guidewire Software (GWRE)
One-Year Revenue Growth: +22.8%
With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE:GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.
Why Are We Positive On GWRE?
- Average billings growth of 20.7% over the last year enhances its liquidity and shows there is steady demand for its products
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Free cash flow margin of 21.3% is higher than many in the industry, giving it breathing room and optionality
Guidewire Software’s stock price of $182.31 implies a valuation ratio of 11.1x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Boston Scientific (BSX)
One-Year Revenue Growth: +21.6%
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE:BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Should BSX Be on Your Watchlist?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 16.2% over the past two years
- Additional sales over the last five years increased its profitability as the 19.9% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 5.5 percentage points over the last five years, giving the company more chips to play with
At $98.47 per share, Boston Scientific trades at 29.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.