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. On that note, here are two growth stocks expanding their competitive advantages and one that could be down big.

One Growth Stock to Sell:

Zebra (ZBRA)

One-Year Revenue Growth: +19.1%

Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Why Do We Pass on ZBRA?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.9% annually over the last two years
2. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

Zebra’s stock price of $326.95 implies a valuation ratio of 21.5x forward P/E. Dive into our free research report to see why there are better opportunities than ZBRA.

Two Growth Stocks to Watch:

Meta (META)

One-Year Revenue Growth: +19.4%

Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.

Why Are We Bullish on META?

1. Customers are spending more money on its platform as its average revenue per user has increased by 14.5% annually over the last two years
2. Share buybacks catapulted its annual earnings per share growth to 31.8%, which outperformed its revenue gains over the last three years
3. Strong free cash flow margin of 29.2% enables it to reinvest or return capital consistently

Meta is trading at $790.60 per share, or 16.9x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.

Carvana (CVNA)

One-Year Revenue Growth: +39.5%

Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.

Why Do We Watch CVNA?

1. Retail Units Sold are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
2. Additional sales over the last three years increased its profitability as the 40.5% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin increased by 22 percentage points over the last few years, giving the company more capital to invest or return to shareholders

At $345.98 per share, Carvana trades at 20.3x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our 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-small-cap company Exlservice (+354% 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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