1 Growth Stock to Add to Your Roster and 2 We Turn Down
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.
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 is one growth stock where the best is yet to come and two climbing an uphill battle.
Two Growth Stocks to Sell:
Lucid (LCID)
One-Year Revenue Growth: +61%
Founded by a former Tesla Vice President, Lucid Group (NASDAQ:LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.
Why Does LCID Fall Short?
Negative 136% gross margin means it loses money on every sale and must pivot or scale quickly to survive Cash-burning tendencies make us wonder if it can sustainably generate shareholder value Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Lucid is trading at $5.84 per share, or 0.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than LCID.
LifeStance Health Group (LFST)
One-Year Revenue Growth: +16.5%
With over 6,600 licensed mental health professionals treating more than 880,000 patients annually, LifeStance Health (NASDAQ:LFST) provides outpatient mental health services through a network of clinicians offering psychiatric evaluations, psychological testing, and therapy across 33 states.
Why Are We Wary of LFST?
Modest revenue base of $1.49 billion gives it less fixed cost leverage and fewer distribution channels than larger companies Low free cash flow margin of 0.9% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders Negative returns on capital show management lost money while trying to expand the business
LifeStance Health Group’s stock price of $7.39 implies a valuation ratio of 21.9x forward P/E. If you’re considering LFST for your portfolio, see our FREE research report to learn more.
One Growth Stock to Watch:
Ollie's (OLLI)
One-Year Revenue Growth: +16.6%
Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet (NASDAQ:OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts.
Why Are We Fans of OLLI?
Offensive push to build new stores and attack its untapped market opportunities is backed by its same-store sales growth Same-store sales growth averaged 3.2% over the past two years, showing it’s bringing new and repeat shoppers into its stores Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
Story Continues
At $82.50 per share, Ollie's trades at 18.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE.
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
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