Here Technologies And Samsara Partner To Deliver Mapping And Geolocation Capabilities For Fleets And Logistics Operations

Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.

Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. Keeping that in mind, here are two growth stocks where the best is yet to come and one that could be down big.

One Growth Stock to Sell:

Root (ROOT)

One-Year Revenue Growth: +59.8%

Pioneering a data-driven approach that rewards good driving habits, Root is a technology-driven auto insurance company that uses mobile apps to acquire customers and data science to price policies based on individual driving behavior.

Why Does ROOT Give Us Pause?

• Annual book value per share declines of 158% for the past five years show its capital management struggled during this cycle
• Push for growth has led to negative returns on capital, signaling value destruction

Root is trading at $88.50 per share, or 4.2x forward P/B. Check out our free in-depth research report to learn more about why ROOT doesn’t pass our bar.

Two Growth Stocks to Buy:

Samsara (IOT)

One-Year Revenue Growth: +31.7%

From sensors on vehicles to AI-powered cameras that help prevent accidents, Samsara is a cloud-based Internet of Things platform that helps businesses improve the safety, efficiency, and sustainability of their physical operations.

Why Is IOT a Good Business?

• ARR growth averaged 33.3% over the last year, showing customers are willing to take multi-year bets on its software
• Expected revenue growth of 22.1% for the next year suggests its market share will rise
• Operating margin improvement of 19.2 percentage points over the last year demonstrates its ability to scale efficiently

Samsara’s stock price of $34.25 implies a valuation ratio of 11.8x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

MercadoLibre (MELI)

One-Year Revenue Growth: +35.8%

Originally started as an online auction platform, MercadoLibre is a one-stop e-commerce marketplace and fintech platform in Latin America.

Why Is MELI a Top Pick?

• Unique Active Buyers have increased by an average of 20.7% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
• Strong engagement trends coupled with 15.5% annual growth in its average revenue per user demonstrate its platform’s stickiness with die-hard customers
• MELI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute

At $2,367 per share, MercadoLibre trades at 23.8x forward EV/EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% five-year return).

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

What Happened?

A number of stocks fell in the afternoon session after markets pulled back as a hotter-than-expected wholesale inflation report for July dampened hopes for a Federal Reserve interest rate cut. The U.S. Producer Price Index (PPI), a key measure of wholesale inflation, rose 0.9% month-over-month in July, far exceeding the 0.2% increase that economists had predicted. Annually, prices at the wholesale level jumped 3.3%, also surpassing the 2.5% forecast. This hotter-than-expected data has poured cold water on widespread expectations for an interest rate cut from the Federal Reserve next month. Persistent inflation makes it less likely for the central bank to ease monetary policy. Sectors with high-growth stocks, such as SaaS, are particularly sensitive to interest rate changes, as the prospect of higher rates for longer can diminish the present value of their future earnings, leading to a decline in stock prices.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Data Analytics company Amplitude fell 3.1%. Is now the time to buy Amplitude? Access our full analysis report here, it’s free.
• Marketing Software company Braze fell 3.1%. Is now the time to buy Braze? Access our full analysis report here, it’s free.
• Data Analytics company Samsara fell 3%. Is now the time to buy Samsara? Access our full analysis report here, it’s free.

Zooming In On Amplitude (AMPL)

Amplitude’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 3.6% on the news that the SaaS sector continued to rally as favorable inflation data bolstered hopes for a Federal Reserve interest rate cut. This optimism was largely driven by a benign July Consumer Price Index (CPI) report, which solidified investor expectations for a Federal Reserve interest rate cut. Following the release of the inflation data, which showed a year-over-year increase of 2.7%, the probability of a rate cut in September surged to over 96%. Lower interest rates are typically beneficial for growth-oriented technology stocks, as they can reduce borrowing costs and increase the present value of future earnings. Adding to the positive sentiment was a 90-day delay in the imposition of higher tariffs on Chinese goods, which reduced trade-related uncertainty for the technology sector.

Amplitude is up 6.2% since the beginning of the year, but at $11.36 per share, it is still trading 21.3% below its 52-week high of $14.44 from February 2025. Investors who bought $1,000 worth of Amplitude’s shares at the IPO in September 2021 would now be looking at an investment worth $207.30.

A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.

Financial flexibility is valuable, but it’s not everything - at StockStory, we help you find the stocks that can not only survive but also outperform. That said, here are two companies with net cash positions that balance growth with stability and one best left off your watchlist.

One Stock to Sell:

Chegg (CHGG)

Net Cash Position: $5.42 million (4.4% of Market Cap)

Started as a physical textbook rental service, Chegg is now a digital platform addressing student pain points by providing study and academic assistance.

Why Are We Out on CHGG?

• Services Subscribers have declined by 17.3% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
• EBITDA profits fell over the last few years as its sales dropped and it struggled to adjust its fixed costs
• Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 38.2% annually, worse than its revenue

Chegg is trading at $1.16 per share, or 1.5x forward EV/EBITDA. Read our free research report to see why you should think twice about including CHGG in your portfolio.

Two Stocks to Watch:

Samsara (IOT)

Net Cash Position: $616 million (3.2% of Market Cap)

One of the few public companies where famed investor Marc Andreessen is a Board member, Samsara provides software and hardware to track industrial equipment, assets, and fleets.

Why Should You Buy IOT?

• ARR growth averaged 33.3% over the last year, showing customers are willing to take multi-year bets on its offerings
• Notable projected revenue growth of 22.1% for the next 12 months hints at market share gains
• Operating margin improvement of 19.2 percentage points over the last year demonstrates its ability to scale efficiently

Samsara’s stock price of $33.95 implies a valuation ratio of 11.8x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

UMB Financial (UMBF)

Net Cash Position: $8.26 billion (98.7% of Market Cap)

With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.

Why Does UMBF Stand Out?

• Annual net interest income growth of 19.7% over the last five years was superb and indicates its market share increased during this cycle
• Exciting net interest income outlook for the upcoming 12 months calls for 37.8% growth, an acceleration from its five-year trend
• Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 15.3% annually

At $110.18 per share, UMB Financial trades at 1.2x forward P/B. Is now a good time to buy? 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 6 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 Comfort Systems (+782% five-year return).

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

What Happened?

Shares of internet of Things company Samsara fell 6% in the afternoon session after an analyst at Piper Sandler lowered the company's price target to $47 from $53, citing a more cautious outlook. While the investment firm maintained its "Overweight" rating, the target reduction added to existing investor worries. A recent letter from the Artisan Mid Cap Fund highlighted that investors focused on management's comments regarding contract delays tied to the macroeconomic environment. These concerns lingered from a previous stock dip in June, when the company's forward-looking guidance underwhelmed the market, overshadowing first-quarter results that beat expectations.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Samsara? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Samsara’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 6 days ago when the stock dropped 5% on the news that the White House announced a new round of steep global tariffs, sparking concerns of a trade war and its impact on the U.S. and global economies. This move creates significant uncertainty for businesses and investors. The new tariffs, with rates of up to 41% on imports from 68 countries and the European Union, prompted a broad market sell-off, with the tech-heavy Nasdaq index showing notable weakness.

Adding to the bearish sentiment was a weaker-than-expected July jobs report, which revealed that employers created only 73,000 jobs, far below economists' expectations. This combination of trade fears and signs of a slowing labor market has created a "risk-off" environment, leading investors to pull back from growth-oriented sectors like software and technology.

Samsara is down 21.6% since the beginning of the year, and at $34.48 per share, it is trading 43.4% below its 52-week high of $60.96 from February 2025. Investors who bought $1,000 worth of Samsara’s shares at the IPO in December 2021 would now be looking at an investment worth $1,396.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.