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.
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 are two growth stocks with significant upside potential and one climbing an uphill battle.
One Growth Stock to Sell:
Byrna (BYRN)
One-Year Revenue Growth: +27%
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ: BYRN) is a provider of non-lethal weapons.
Why Are We Cautious About BYRN?
- Negative free cash flow raises questions about the return timeline for its investments
- Negative returns on capital show management lost money while trying to expand the business
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Byrna’s stock price of $5.60 implies a valuation ratio of 23x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than BYRN.
Two Growth Stocks to Watch:
e.l.f. Beauty (ELF)
One-Year Revenue Growth: +16.7%
Short for "eyes, lips, face", e.l.f. Beauty (NYSE: ELF) is a developer of high-quality beauty products at accessible price points.
Why Are We Fans of ELF?
- Market share has increased over the last three years as its 45.2% annual revenue growth was exceptional
- Earnings per share have massively outperformed its peers over the last three years, increasing by 38.2% annually
- Free cash flow margin grew by 12.2 percentage points over the last year, giving the company more chips to play with
e.l.f. Beauty is trading at $61.71 per share, or 19.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Piper Sandler (PIPR)
One-Year Revenue Growth: +23.6%
Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE: PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.
Why Does PIPR Stand Out?
- Market share has increased this cycle as its 19.6% annual revenue growth over the last two years was exceptional
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 34.8% outpaced its revenue gains
- Annual tangible book value per share growth of 13.5% over the past two years was outstanding, reflecting strong capital accumulation this cycle
At $80.46 per share, Piper Sandler trades at 2.7x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
