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. That said, here is one growth stock with significant upside potential and two climbing an uphill battle.
Two Growth Stocks to Sell:
Rocket Lab (RKLB)
One-Year Revenue Growth: +52.4%
Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ:RKLB) offers rockets designed for launching small satellites.
Why Are We Hesitant About RKLB?
- Poor expense management has led to operating margin losses
- Earnings per share have contracted by 33.4% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
- Cash burn makes us question whether it can achieve sustainable long-term growth
Rocket Lab’s stock price of $60.56 implies a valuation ratio of 36.6x forward price-to-sales. If you’re considering RKLB for your portfolio, see our FREE research report to learn more.
Interactive Brokers (IBKR)
One-Year Revenue Growth: +18.6%
Founded in 1977 and known for its sophisticated trading technology and global reach across 150+ exchanges in 34 countries, Interactive Brokers (NASDAQ:IBKR) is a global electronic broker that provides low-cost trading and investment services across stocks, options, futures, forex, bonds, and other financial instruments.
Why Does IBKR Give Us Pause?
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $62.92 per share, Interactive Brokers trades at 27.2x forward P/E. Read our free research report to see why you should think twice about including IBKR in your portfolio.
One Growth Stock to Buy:
Axon (AXON)
One-Year Revenue Growth: +32%
Providing body cameras and tasers for first responders, AXON (NASDAQ:AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Is AXON a Top Pick?
- Average unit sales growth of 26.3% over the past two years reflects steady demand for its products
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Earnings per share grew by 35.2% annually over the last two years, massively outpacing its peers
Axon is trading at $568.45 per share, or 79.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
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 5 Strong Momentum Stocks for this week. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.