2 Growth Stocks Set to Flourish and 1 Facing Headwinds

Petr Huřťák

Fri, June 5, 2026 at 2:56 PM EDT 3 min read

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.

Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. On that note, here are two growth stocks where the best is yet to come and one facing an uphill battle.

One Growth Stock to Sell:

EVgo (EVGO)

One-Year Revenue Growth: +51%

Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.

Why Does EVGO Worry Us?

1. Poor expense management has led to operating margin losses

2. Cash-burning history makes us doubt the long-term viability of its business model

3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

EVgo’s stock price of $2.47 implies a valuation ratio of 15.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why EVGO doesn’t pass our bar.

Two Growth Stocks to Watch:

GitLab (GTLB)

One-Year Revenue Growth: +24.9%

With its all-remote workforce pioneering a new approach to software development, GitLab (NASDAQ:GTLB) provides a single-application DevSecOps platform that helps development, operations, and security teams collaborate to build, secure, and deploy software faster.

Why Are We Bullish on GTLB?

1. Market share has increased as its 27.1% annual revenue growth over the last two years was exceptional

2. Ability to secure long-term commitments with customers is evident in its 24.9% ARR growth over the last year

3. Prominent and differentiated software culminates in a best-in-class gross margin of 86.8%

GitLab is trading at $30.44 per share, or 4.6x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

Astrana Health (ASTH)

One-Year Revenue Growth: +56.7%

Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ:ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.

Why Does ASTH Stand Out?

1. Impressive 55.7% annual revenue growth over the last two years indicates it’s winning market share this cycle

2. Projected revenue growth of 16.5% for the next 12 months suggests its momentum from the last two years will persist

3. Earnings per share grew by 13.2% annually over the last five years and trumped its peers