1 Growth Stock with All-Star Potential and 2 That Underwhelm

Core Insights - The article discusses the volatility of growth stocks, emphasizing that while growth is essential for companies, market corrections can be severe when growth trajectories decline [1]. Group 1: Growth Stocks to Sell - Mission Produce (AVO): - One-Year Revenue Growth: +25.3% - Current trading price is $12.21 per share, with a forward P/E ratio of 18x [3][5]. - Guardant Health (GH): - One-Year Revenue Growth: +30.4% - Current stock price is $94, implying a valuation ratio of 10.4x forward price-to-sales [6][8]. Group 2: Growth Stock to Buy - Netflix (NFLX): - One-Year Revenue Growth: +15.4% - Revenue base of $1.43 billion is a disadvantage compared to larger competitors, with a projected sales decline of 7.1% for the next 12 months [9][10]. - Positive Aspects of NFLX: - Global streaming paid memberships are increasing, allowing for revenue growth without additional customer acquisition costs [12]. - Share buybacks have led to a 29% annual earnings per share growth, outperforming revenue gains [12]. - Free cash flow margin increased by 18.4 percentage points, providing more resources for growth initiatives [12].