Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
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. On that note, here are two growth stocks where the best is yet to come and one whose momentum may slow.
One Growth Stock to Sell:
Hasbro (HAS)
One-Year Revenue Growth: +17%
Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.
Why Do We Pass on HAS?
- Annual sales declines of 3.5% for the past five years show its products and services struggled to connect with the market
- Subpar operating margin of 9.7% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Earnings per share lagged its peers over the last five years as they only grew by 2.7% annually
Hasbro is trading at $89.56 per share, or 14.9x forward P/E. If you’re considering HAS for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Buy:
Kratos (KTOS)
One-Year Revenue Growth: +25.5%
Established with a commitment to supporting national security, Kratos (NASDAQ: KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications.
What Makes KTOS Stand Out?
- Core business can prosper without any help from acquisitions as its organic revenue growth averaged 14.9% over the past two years
- Projected revenue growth of 30.6% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 18.7% annually
At $43.13 per share, Kratos trades at 47.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Natera (NTRA)
One-Year Revenue Growth: +37.8%
Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ: NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.
Why Will NTRA Outperform?
- Products are reaching more customers as its tests processed averaged 19.3% growth over the past two years
- Earnings per share grew by 18.2% annually over the last five years, massively outpacing its peers
- Free cash flow turned positive over the last five years, indicating the company has passed a significant test
Natera’s stock price of $411.78 implies a valuation ratio of 18.6x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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.
