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.
The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. On that note, here are two growth stocks expanding their competitive advantages and one climbing an uphill battle.
One Growth Stock to Sell:
Matrix Service (MTRX)
One-Year Revenue Growth: +17.2%
Founded in Oklahoma, Matrix Service (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.
Why Are We Cautious About MTRX?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.9% annually over the last five years
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 3.8%
- Earnings per share decreased by more than its revenue over the last five years, partly because it diluted shareholders
Matrix Service’s stock price of $12.17 implies a valuation ratio of 22.3x forward P/E. Dive into our free research report to see why there are better opportunities than MTRX.
Two Growth Stocks to Buy:
Nova (NVMI)
One-Year Revenue Growth: +39.4%
Headquartered in Israel, Nova (NASDAQ:NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Why Are We Backing NVMI?
- Market share has increased this cycle as its 26.3% annual revenue growth over the last two years was exceptional
- Earnings per share grew by 33.1% annually over the last five years and trumped its peers
- NVMI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $336.38 per share, Nova trades at 36.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
McKesson (MCK)
One-Year Revenue Growth: +17.2%
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Will MCK Beat the Market?
- 15.3% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Unparalleled scale of $387.1 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.3% exceeded its revenue gains over the last five years
McKesson is trading at $795.35 per share, or 19.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 5 Growth Stocks for this month. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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