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 are precisely why we started StockStory — to isolate the long-term winners from the losers so you can invest with confidence. On that note, here are two growth stocks expanding their competitive advantages and one that could be down big.
One Growth Stock to Sell:
Bally's (BALY)
One-Year Revenue Growth: +15.6%
Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE: BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms.
Why Do We Steer Clear of BALY?
- Lackluster 6.9% annual revenue growth over the last two years indicates the company is losing ground to competitors
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Bally’s stock price of $15.33 implies a valuation ratio of 11.6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including BALY in your portfolio.
Two Growth Stocks to Watch:
Freshworks (FRSH)
One-Year Revenue Growth: +15.9%
Starting as a customer service solution before expanding into a comprehensive software suite, Freshworks (NASDAQ: FRSH) provides AI-powered software-as-a-service solutions that help companies manage customer service, IT support, sales, and marketing functions.
Why Does FRSH Stand Out?
- 25.8% annual revenue growth over the last five years surpassed the sector average as its software resonated with customers
- Prominent and differentiated software culminates in a stellar gross margin of 85%
- Robust free cash flow margin of 25.7% gives it many options for capital deployment
At $9.24 per share, Freshworks trades at 2.7x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Amphenol (APH)
One-Year Revenue Growth: +54.4%
With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.
Why Are We Bullish on APH?
- Market share has increased this cycle as its 42.1% annual revenue growth over the last two years was exceptional
- Additional sales over the last two years increased its profitability as the 55.5% annual growth in its earnings per share outpaced its revenue
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
Amphenol is trading at $148.06 per share, or 30.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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.
