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 climbing an uphill battle.
One Growth Stock to Sell:
BKV (BKV)
One-Year Revenue Growth: +73.6%
Operating a "closed-loop" model linking gas production to carbon capture, BKV (NYSE: BKV) produces natural gas from shale formations in Texas and Pennsylvania, selling it to utilities, industrial users, and exporters.
Why Are We Wary of BKV?
- Muted 3.6% annual revenue growth over the last four years shows its demand lagged behind its energy upstream and integrated energy peers
- Revenue base of $1.01 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Poor free cash flow margin of 6.3% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
BKV is trading at $31.85 per share, or 16x forward P/E. If you’re considering BKV for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Buy:
Vertiv (VRT)
One-Year Revenue Growth: +29%
Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.
Why Should You Buy VRT?
- Average organic revenue growth of 23.7% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Free cash flow margin grew by 22.4 percentage points over the last five years, giving the company more chips to play with
- Improving returns on capital reflect management’s ability to monetize investments
At $328.73 per share, Vertiv trades at 48.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Shift4 (FOUR)
One-Year Revenue Growth: +25.5%
Starting as a payment gateway provider in 1999 and now processing over $200 billion in annual payment volume, Shift4 Payments (NYSE: FOUR) provides integrated payment processing solutions and software that help businesses accept and manage transactions across in-store, online, and mobile channels.
Why Are We Backing FOUR?
- Impressive 27.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 36.1% annually, topping its revenue gains
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Shift4’s stock price of $45.61 implies a valuation ratio of 7.9x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
