Growth is oxygen. But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. On that note, here are two growth stocks where the best is yet to come and one climbing an uphill battle.
One Growth Stock to Sell:
Root (ROOT)
One-Year Revenue Growth: +38.5%
Pioneering a data-driven approach that rewards good driving habits, Root (NASDAQ: ROOT) is a technology-driven auto insurance company that uses mobile apps to acquire customers and data science to price policies based on individual driving behavior.
Why Are We Hesitant About ROOT?
- Annual book value per share declines of 158% for the past five years show its capital management struggled during this cycle
- Negative return on equity shows that some of its growth strategies have backfired
Root is trading at $62.43 per share, or 3.1x forward P/B. If you’re considering ROOT for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Watch:
Confluent (CFLT)
One-Year Revenue Growth: +21.6%
Built by the original creators of Apache Kafka, the popular open-source messaging system, Confluent (NASDAQ: CFLT) provides a data infrastructure platform that enables organizations to connect their applications, systems, and data layers around real-time data streams.
Why Are We Positive On CFLT?
- Average billings growth of 26.1% over the last year enhances its liquidity and shows there is steady demand for its products
- Estimated revenue growth of 16.7% for the next 12 months implies its momentum over the last two years will continue
- Gross margin of 74.1% provides the financial cushion needed to invest in marketing and develop new products
At $30.43 per share, Confluent trades at 8.1x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Samsara (IOT)
One-Year Revenue Growth: +29%
From sensors on vehicles to AI-powered cameras that help prevent accidents, Samsara (NYSE: IOT) is a cloud-based Internet of Things platform that helps businesses improve the safety, efficiency, and sustainability of their physical operations.
Why Are We Bullish on IOT?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
Samsara’s stock price of $24.68 implies a valuation ratio of 8.5x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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 5 Growth Stocks for this month. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
