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.

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 with significant upside potential and one whose momentum may slow.

One Growth Stock to Sell:

Great Lakes Dredge & Dock (GLDD)

One-Year Revenue Growth: +24.4%

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ: GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Why Does GLDD Give Us Pause?

1. Annual revenue growth of 2.9% over the last five years was below our standards for the industrials sector
2. Projected sales decline of 1.3% for the next 12 months points to a tough demand environment ahead
3. Cash burn makes us question whether it can achieve sustainable long-term growth

At $12.09 per share, Great Lakes Dredge & Dock trades at 15.1x forward P/E. To fully understand why you should be careful with GLDD, check out our full research report (it’s free).

Two Growth Stocks to Watch:

Molina Healthcare (MOH)

One-Year Revenue Growth: +16.1%

Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE: MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.

Why Do We Like MOH?

1. Market share has increased this cycle as its 19.7% annual revenue growth over the last five years was exceptional
2. Economies of scale give it fixed cost leverage when sales grow as well as negotiating power over membership pricing and reimbursement rates
3. Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 11.1% annually

Molina Healthcare’s stock price of $179.15 implies a valuation ratio of 7.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Palomar Holdings (PLMR)

One-Year Revenue Growth: +53%

Founded in 2013 to fill gaps in catastrophe insurance markets, Palomar Holdings (NASDAQ: PLMR) is a specialty insurance provider that offers property and casualty insurance products in underserved markets, with a focus on earthquake coverage.

Why Do We Love PLMR?

1. Market penetration was impressive this cycle as its net premiums earned expanded by 38.3% annually over the last two years
2. Annual book value per share growth of 37.7% over the last two years was superb and indicates its capital strength increased during this cycle
3. Notable projected book value per share growth of 24.9% for the next 12 months hints at strong capital generation

Palomar Holdings is trading at $118.70 per share, or 3.5x forward P/B. Is now the right time to buy? See for yourself in our full 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 9 Market-Beating Stocks. 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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