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. Keeping that in mind, here is one growth stock with significant upside potential and two facing an uphill battle.
Two Growth Stocks to Sell:
Teradyne (TER)
One-Year Revenue Growth: +57.9%
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ: TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Why Are We Wary of TER?
- Decent 5.3% annual revenue growth over the last five years beat most of its peers, showing customers find value in its products and services
- Estimated sales growth of 24.4% for the next 12 months implies demand will slow from its two-year trend
- Free cash flow margin dropped by 6.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Teradyne’s stock price of $349.75 implies a valuation ratio of 36.4x forward P/E. If you’re considering TER for your portfolio, see our FREE research report to learn more.
Corcept (CORT)
One-Year Revenue Growth: +16%
Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.
Why Are We Hesitant About CORT?
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 16.1% annually
- Free cash flow margin shrank by 25.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Waning returns on capital imply its previous profit engines are losing steam
Corcept is trading at $113.58 per share, or 25.5x forward P/E. Read our free research report to see why you should think twice about including CORT in your portfolio.
One Growth Stock to Watch:
Boeing (BA)
One-Year Revenue Growth: +24.8%
One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE: BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.
Why Does BA Catch Our Eye?
- Products are seeing elevated demand as its unit sales averaged 60.4% growth over the past two years
- Projected revenue growth of 12.3% for the next 12 months suggests its momentum from the last two years will persist
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 48.1% over the last two years outstripped its revenue performance
At $208.01 per share, Boeing trades at 173.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
