2 Growth Stocks Set to Flourishand 1 We Brush Off

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.

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. Keeping that in mind, here are two growth stocks with significant upside potential and one that could be down big.

One Growth Stock to Sell:

AeroVironment (AVAV)

One-Year Revenue Growth: +141%

Focused on the future of autonomous military combat, AeroVironment (NASDAQ:AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions.

Why Does AVAV Worry Us?

1. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 13.5 percentage points
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Negative returns on capital show management lost money while trying to expand the business

AeroVironment is trading at $192.00 per share, or 59.6x forward P/E. Check out our free in-depth research report to learn more about why AVAV doesn’t pass our bar.

Two Growth Stocks to Watch:

Reddit (RDDT)

One-Year Revenue Growth: +66.6%

Founded in 2005 by two University of Virginia roommates, Reddit (NYSE:RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.

Why Do We Love RDDT?

1. Domestic Daily Active Visitors have increased by an average of 13.2% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
2. Switching costs of its platform were on full display over the last two years as it not only grew engagement but also increased the average revenue per user by 47.1% annually
3. Strong free cash flow margin of 31.8% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute

Reddit’s stock price of $177.95 implies a valuation ratio of 16.1x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.

FirstCash (FCFS)

One-Year Revenue Growth: +21.6%

Offering a financial lifeline to the unbanked and credit-constrained since 1988, FirstCash (NASDAQ:FCFS) operates pawn stores across the U.S. and Latin America while also providing retail point-of-sale payment solutions for credit-constrained consumers.

Why Do We Watch FCFS?

1. Impressive 21.6% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 27.5% outpaced its revenue gains
3. Industry-leading 13.4% return on equity demonstrates management’s skill in finding high-return investments

At $211 per share, FirstCash trades at 17.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.