Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
The risks that can come from buying these assets are precisely why we started StockStory — to isolate the long-term winners from the losers so you can invest with confidence. Keeping that in mind, here are two growth stocks expanding their competitive advantages and one whose momentum may slow.
One Growth Stock to Sell:
Radian Group (RDN)
One-Year Revenue Growth: +28.8%
Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE:RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership.
Why Is RDN Not Exciting?
- 4.4% annualized net premiums earned growth over the last five years lagged behind its insurance peers
- Day-to-day expenses have swelled relative to revenue over the last five years as its pre-tax profit margin fell by 7.4 percentage points
- Incremental sales over the last two years were less profitable as its 6.6% annual earnings per share growth lagged its revenue gains
Radian Group is trading at $36.53 per share, or 1x forward P/B. Read our free research report to see why you should think twice about including RDN in your portfolio.
Two Growth Stocks to Buy:
Coherent (COHR)
One-Year Revenue Growth: +22.5%
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE:COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Do We Love COHR?
- Annual revenue growth of 23% over the last two years was superb and indicates its market share increased during this cycle
- Exciting sales outlook for the upcoming 12 months calls for 49.3% growth, an acceleration from its two-year trend
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 83.7% annually
At $290.92 per share, Coherent trades at 31.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
GE Aerospace (GE)
One-Year Revenue Growth: +24.9%
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
Why Is GE a Good Business?
- Annual revenue growth of 19.3% over the past two years was outstanding, reflecting market share gains this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 35.5% to outpace its revenue gains
- Strong free cash flow margin of 18.7% enables it to reinvest or return capital consistently
GE Aerospace’s stock price of $342.64 implies a valuation ratio of 42.2x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.