2 Growth Stocks to Add to Your Roster and 1 We Find Risky

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 expanding their competitive advantages and one facing an uphill battle.

One Growth Stock to Sell:

Fastly (FSLY)

One-Year Revenue Growth: +17.7%

Taking its name from the core advantage it delivers to customers, Fastly (NASDAQ:FSLY) operates an edge cloud platform that processes, secures, and delivers web content as close to end users as possible, enabling faster digital experiences.

Why Are We Wary of FSLY?

1. Struggled to drive increased usage of its software, demonstrated by its subpar 107% net revenue retention rate
2. Bad unit economics and steep infrastructure costs are reflected in its gross margin of 59.4%, one of the worst among software companies
3. Poor expense management has led to operating margin losses

Fastly is trading at $17.79 per share, or 3.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than FSLY.

Two Growth Stocks to Watch:

AMD (AMD)

One-Year Revenue Growth: +35%

Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.

Why Does AMD Stand Out?

1. Annual revenue growth of 26.8% over the last five years was superb and indicates its market share increased during this cycle
2. Market share is on track to rise over the next 12 months as its 47.6% projected revenue growth implies demand will accelerate from its two-year trend
3. Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 23% annually

At $536.62 per share, AMD trades at 61.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

BWX (BWXT)

One-Year Revenue Growth: +21.4%

Contributing components and materials to the famous Manhattan Project in the 1940s, BWX (NYSE:BWXT) is a manufacturer and service provider of nuclear components and fuel for government and commercial industries.

Why Will BWXT Beat the Market?

1. Annual revenue growth of 15.5% over the last two years was superb and indicates its market share increased during this cycle
2. Notable projected revenue growth of 14.7% for the next 12 months hints at market share gains
3. Free cash flow margin grew by 8.7 percentage points over the last five years, giving the company more chips to play with

BWX’s stock price of $205.25 implies a valuation ratio of 43.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.