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 where the best is yet to come and one climbing an uphill battle.
One Growth Stock to Sell:
Lincoln Educational (LINC)
One-Year Revenue Growth: +16.9%
Established in 1946, Lincoln Educational (NASDAQ: LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.
Why Do We Pass on LINC?
- Demand for its offerings was relatively low as its number of enrolled students has underwhelmed
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Lincoln Educational’s stock price of $26.08 implies a valuation ratio of 33.7x forward P/E. If you’re considering LINC for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Buy:
Duolingo (DUOL)
One-Year Revenue Growth: +39.9%
Founded by a Carnegie Mellon computer science professor and his Ph.D. student, Duolingo (NASDAQ: DUOL) is a mobile app helping people learn new languages.
Why Are We Backing DUOL?
- Monthly Active Users 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 significantly boosted profitability as its annual earnings per share growth of 259% over the last three years outstripped its revenue performance
- Strong free cash flow margin of 34.8% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $151.44 per share, Duolingo trades at 17.7x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
CECO Environmental (CECO)
One-Year Revenue Growth: +29.9%
With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ: CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.
Why Are We Bullish on CECO?
- Market share has increased this cycle as its 19% annual revenue growth over the last two years was exceptional
- Adjusted operating margin improvement of 11.4 percentage points over the last five years demonstrates its ability to scale efficiently
- Improving returns on capital suggest its past investments are beginning to deliver value
CECO Environmental is trading at $67.59 per share, or 51.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
