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. To fully understand why you should be careful with LCID, check out our full research report (it’s free).
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. Check out our free in-depth research report to learn more about why LFST doesn’t pass our bar.
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
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.
