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. That said, here are two growth stocks where the best is yet to come and one whose momentum may slow.
One Growth Stock to Sell:
Varonis Systems (VRNS)
One-Year Revenue Growth: +15.6%
Beginning with protecting Windows file shares in 2005 and evolving into a comprehensive security platform, Varonis Systems (NASDAQ:VRNS) provides data security software that helps organizations protect sensitive information, detect threats, and comply with privacy regulations.
Why Are We Out on VRNS?
- Products, pricing, or go-to-market strategy may need some adjustments as its 13% average billings growth over the last year was weak
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 1.6 percentage points
Varonis Systems’s stock price of $48.53 implies a valuation ratio of 6.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than VRNS.
Two Growth Stocks to Watch:
SoFi (SOFI)
One-Year Revenue Growth: +39.2%
Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ:SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.
Why Is SOFI a Top Pick?
- Impressive 35.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 183% over the last two years outstripped its revenue performance
SoFi is trading at $14.46 per share, or 20.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Boot Barn (BOOT)
One-Year Revenue Growth: +17.6%
With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE:BOOT) is a western-inspired apparel and footwear retailer.
Why Are We Fans of BOOT?
- Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
- Comparable store sales rose by 6.7% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Demand for the next 12 months is expected to accelerate above its three-year trend as Wall Street forecasts robust revenue growth of 14.5%
At $121.55 per share, Boot Barn trades at 13.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.