Growth is oxygen. But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.
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 are two growth stocks with significant upside potential and one climbing an uphill battle.
One Growth Stock to Sell:
Option Care Health (OPCH)
One-Year Revenue Growth: +13%
With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ: OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States.
Why Does OPCH Worry Us?
- 1.5 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Option Care Health is trading at $31.62 per share, or 18x forward P/E. Check out our free in-depth research report to learn more about why OPCH doesn’t pass our bar.
Two Growth Stocks to Buy:
Super Micro (SMCI)
One-Year Revenue Growth: +34.8%
Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.
Why Will SMCI Beat the Market?
- Annual revenue growth of 74.1% over the last two years was superb and indicates its market share increased during this cycle
- Earnings per share grew by 45.5% annually over the last five years, massively outpacing its peers
- Free cash flow margin is now positive, indicating the company has achieved financial self-sustainability
At $32.14 per share, Super Micro trades at 13.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Palomar Holdings (PLMR)
One-Year Revenue Growth: +58.2%
Founded in 2013 to fill gaps in catastrophe insurance markets, Palomar Holdings (NASDAQ: PLMR) is a specialty insurance provider that offers property and casualty insurance products in underserved markets, with a focus on earthquake coverage.
Why Should You Buy PLMR?
- Strong 52.3% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Balance sheet strength has increased this cycle as its 36.7% annual book value per share growth over the last two years was exceptional
- Capital strength will likely rise over the next 12 months as its expected book value per share growth of 26.4% is robust
Palomar Holdings’s stock price of $121.97 implies a valuation ratio of 2.8x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
