Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
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 whose momentum may slow.
One Growth Stock to Sell:
Viavi Solutions (VIAV)
One-Year Revenue Growth: +15.6%
Once known as JDS Uniphase before its 2015 rebranding, Viavi Solutions (NASDAQ:VIAV) provides testing, monitoring and assurance solutions for telecommunications, cloud, enterprise, military, and other critical networks and infrastructure.
Why Do We Avoid VIAV?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Free cash flow margin shrank by 7.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Viavi Solutions’s stock price of $17.85 implies a valuation ratio of 25x forward P/E. Check out our free in-depth research report to learn more about why VIAV doesn’t pass our bar.
Two Growth Stocks to Buy:
Primoris (PRIM)
One-Year Revenue Growth: +21.5%
Listed on the NASDAQ in 2008, Primoris (NYSE:PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.
Why Will PRIM Beat the Market?
- Demand is greater than supply as the company’s 143% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Earnings per share have massively outperformed its peers over the last two years, increasing by 39.1% annually
- Free cash flow margin increased by 5.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Primoris is trading at $135.27 per share, or 23.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Ryan Specialty (RYAN)
One-Year Revenue Growth: +24.3%
Founded in 2010 by insurance industry veteran Patrick Ryan, Ryan Specialty (NYSE:RYAN) is a wholesale insurance broker and underwriting manager that helps retail brokers place complex or hard-to-place risks with insurance carriers.
Why Should You Buy RYAN?
- Average organic revenue growth of 12.8% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 23.1% annually
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $50.77 per share, Ryan Specialty trades at 22x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 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.