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.
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. Keeping that in mind, here is one growth stock expanding its competitive advantage and two whose momentum may slow.
Two Growth Stocks to Sell:
Lattice Semiconductor (LSCC)
One-Year Revenue Growth: +17.4%
A global leader in its category, Lattice Semiconductor (NASDAQ:LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Why Is LSCC Not Exciting?
- Sales tumbled by 9% annually over the last two years, showing market trends are working against its favor during this cycle
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 16.2 percentage points
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.7 percentage points
Lattice Semiconductor is trading at $123.13 per share, or 64.9x forward P/E. Read our free research report to see why you should think twice about including LSCC in your portfolio.
First Watch (FWRG)
One-Year Revenue Growth: +20.4%
Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.
Why Are We Cautious About FWRG?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Cash burn makes us question whether it can achieve sustainable long-term growth
- High net-debt-to-EBITDA ratio of 8× could force the company to raise capital at unfavorable terms if market conditions deteriorate
At $12.17 per share, First Watch trades at 58.7x forward P/E. If you’re considering FWRG for your portfolio, see our FREE research report to learn more.
One Growth Stock to Buy:
Omnicom Group (OMC)
One-Year Revenue Growth: +25.9%
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE:OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Why Are We Backing OMC?
- Market share has increased this cycle as its 15.4% annual revenue growth over the last two years was exceptional
- Enormous revenue base of $19.82 billion provides significant distribution advantages
- Free cash flow margin grew by 6.8 percentage points over the last five years, giving the company more chips to play with
Omnicom Group’s stock price of $77.71 implies a valuation ratio of 6.5x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full 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 for 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 (+1,326% 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.