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. That said, here are two growth stocks where the best is yet to come and one that could be down big.
One Growth Stock to Sell:
Washington Trust Bancorp (WASH)
One-Year Revenue Growth: +15.8%
Founded in 1800 and operating as Rhode Island's oldest community bank, Washington Trust Bancorp (NASDAQ:WASH) is a regional bank holding company offering commercial banking, mortgage lending, personal banking, and wealth management services.
Why Do We Avoid WASH?
- Annual net interest income growth of 3.7% over the last five years was below our standards for the banking sector
- Inferior net interest margin of 2.2% means it must compensate for lower profitability through increased loan originations
- Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 7.8% annually
Washington Trust Bancorp’s stock price of $36.17 implies a valuation ratio of 1.2x forward P/B. Check out our free in-depth research report to learn more about why WASH doesn’t pass our bar.
Two Growth Stocks to Watch:
Roku (ROKU)
One-Year Revenue Growth: +16.6%
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 Does ROKU Catch Our Eye?
- Total Hours Streamed 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 51.2% annually, topping its revenue gains
- Free cash flow margin expanded by 14 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Roku is trading at $85.01 per share, or 23x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.
Cadre (CDRE)
One-Year Revenue Growth: +19.9%
Originally known as Safariland, Cadre (NYSE:CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Does CDRE Stand Out?
- Market share has increased this cycle as its 13.4% annual revenue growth over the last two years was exceptional
- Projected revenue growth of 11.6% for the next 12 months suggests its momentum from the last two years will persist
- Earnings per share have comfortably outperformed the peer group average over the last two years, increasing by 14.2% annually
At $40.41 per share, Cadre trades at 27.9x forward P/E. Is now a good time to buy? Find out in our full 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 9 Market-Beating Stocks. 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.