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 is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here is one growth stock with significant upside potential and two climbing an uphill battle.
Two Growth Stocks to Sell:
Western Digital (WDC)
One-Year Revenue Growth: +50.7%
Founded in 1970 by a Motorola employee, Western Digital (NASDAQ: WDC) is a leading producer of hard disk drives, SSDs and flash memory.
Why Are We Hesitant About WDC?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 10.7% annually over the last five years
- Negative 7.7% gross margin means it loses money on every sale and must pivot or scale quickly to survive
- Low free cash flow margin of 4.4% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
At $132.39 per share, Western Digital trades at 23.2x forward P/E. Check out our free in-depth research report to learn more about why WDC doesn’t pass our bar.
eHealth (EHTH)
One-Year Revenue Growth: +16.2%
Aiming to address a high-stakes and often confusing decision, eHealth (NASDAQ: EHTH) guides consumers through health insurance enrollment and related topics.
Why Does EHTH Worry Us?
- Estimated Membership have declined by 2.2% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
- Sales are projected to tank by 2.5% over the next 12 months as demand evaporates
- Negative free cash flow raises questions about the return timeline for its investments
eHealth’s stock price of $4.24 implies a valuation ratio of 3.1x forward EV/EBITDA. To fully understand why you should be careful with EHTH, check out our full research report (it’s free).
One Growth Stock to Watch:
Primoris (PRIM)
One-Year Revenue Growth: +15.1%
Listed on the NASDAQ in 2008, Primoris (NYSE: PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.
Why Are We Positive On PRIM?
- Annual revenue growth of 15.9% over the last five years was superb and indicates its market share increased during this cycle
- Average backlog growth of 159% over the past two years shows it has a steady sales pipeline that will drive future orders
- Earnings per share grew by 28.6% annually over the last two years and trumped its peers
Primoris is trading at $141 per share, or 30.3x 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
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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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