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. On that note, here are two growth stocks expanding their competitive advantages and one climbing an uphill battle.
One Growth Stock to Sell:
C3.ai (AI)
One-Year Revenue Growth: +25.3%
Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE:AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.
Why Does AI Fall Short?
- 15.5% annual revenue growth over the last three years was slower than its software peers
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Historical operating margin losses point to an inefficient cost structure
C3.ai’s stock price of $25.72 implies a valuation ratio of 7.4x forward price-to-sales. If you’re considering AI for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Watch:
Monday.com (MNDY)
One-Year Revenue Growth: +32.3%
Founded in 2014 and named after the dreaded first day of the work week, Monday.com (NASDAQ:MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently.
Why Is MNDY a Good Business?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Software is difficult to replicate at scale and results in a best-in-class gross margin of 89.5%
- Strong free cash flow margin of 30.4% enables it to reinvest or return capital consistently
Monday.com is trading at $305 per share, or 12.7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Doximity (DOCS)
One-Year Revenue Growth: +20%
Founded in 2010 and named for a combination of “docs” and “proximity”, Doximity (NYSE: DOCS) is the leading social network for U.S. medical professionals.
Why Should DOCS Be on Your Watchlist?
- Billings have averaged 23.5% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- DOCS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $58.44 per share, Doximity trades at 19x forward price-to-sales. 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
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.