close

2 Growth Stocks to Add to Your Roster and 1 We Question

GTLB Cover Image

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 whose momentum may slow.

One Growth Stock to Sell:

Freshpet (FRPT)

One-Year Revenue Growth: +16.3%

Standing out from typical processed pet foods, Freshpet (NASDAQ: FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.

Why Are We Cautious About FRPT?

  1. Modest revenue base of $1.08 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
  2. Negative free cash flow raises questions about the return timeline for its investments
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

Freshpet is trading at $63.26 per share, or 43.9x forward P/E. To fully understand why you should be careful with FRPT, check out our full research report (it’s free).

Two Growth Stocks to Buy:

GitLab (GTLB)

One-Year Revenue Growth: +27.4%

With its all-remote workforce pioneering a new approach to software development, GitLab (NASDAQ: GTLB) provides a single-application DevSecOps platform that helps development, operations, and security teams collaborate to build, secure, and deploy software faster.

Why Are We Backing GTLB?

  1. Customers view its software as mission-critical to their operations as its ARR has averaged 28.1% growth over the last year
  2. Superior software functionality and low servicing costs are reflected in its best-in-class gross margin of 88%
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

At $36.15 per share, GitLab trades at 5.6x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.

CLEAR Secure (YOU)

One-Year Revenue Growth: +17.8%

Recognized by its signature blue lanes and biometric pods at airport checkpoints across America, CLEAR Secure (NYSE: YOU) provides biometric identity verification technology that allows subscribers to bypass regular security lines at airports and access secure experiences at various venues.

Why Should You Buy YOU?

  1. Annual revenue growth of 23.2% over the past two years was outstanding, reflecting market share gains
  2. Superior software functionality and low servicing costs lead to a best-in-class gross margin of 86%
  3. Highly efficient business model is illustrated by its impressive 19.2% operating margin, and its rise over the last year was fueled by some leverage on its fixed costs

CLEAR Secure’s stock price of $34.27 implies a valuation ratio of 3.4x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

More News

View More

Recent Quotes

View More
Symbol Price Change (%)
AMZN  238.88
+2.23 (0.94%)
AAPL  258.87
-1.09 (-0.42%)
AMD  236.35
+12.75 (5.70%)
BAC  52.90
+0.42 (0.80%)
GOOG  332.76
-3.55 (-1.05%)
META  621.98
+6.46 (1.05%)
MSFT  459.78
+0.40 (0.09%)
NVDA  188.35
+5.21 (2.84%)
ORCL  192.73
-0.88 (-0.46%)
TSLA  442.92
+3.72 (0.85%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.

Starting at $3.75/week.

Subscribe Today