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.
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 is one growth stock where the best is yet to come and two that could be down big.
Two Growth Stocks to Sell:
Zillow (ZG)
One-Year Revenue Growth: +17.7%
Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ: ZG) is the leading U.S. online real estate marketplace.
Why Is ZG Risky?
- Annual sales declines of 6.7% for the past five years show its products and services struggled to connect with the market
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 5.8% annually
- Low free cash flow margin of 11.6% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
At $36.34 per share, Zillow trades at 14x forward P/E. Dive into our free research report to see why there are better opportunities than ZG.
Baldwin Insurance Group (BWIN)
One-Year Revenue Growth: +18.9%
Rebranded from BRP Group in May 2024, Baldwin Insurance Group (NASDAQ: BWIN) is an independent insurance distribution company that provides tailored insurance, risk management, and employee benefits solutions to businesses and individuals.
Why Do We Think Twice About BWIN?
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 8.2 percentage points
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -1% for the last five years
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Baldwin Insurance Group’s stock price of $30.15 implies a valuation ratio of 13.4x forward P/E. Check out our free in-depth research report to learn more about why BWIN doesn’t pass our bar.
One Growth Stock to Watch:
Advanced Energy (AEIS)
One-Year Revenue Growth: +24.6%
Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ: AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.
Why Could AEIS Be a Winner?
- Annual revenue growth of 16.3% over the past two years was outstanding, reflecting market share gains this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 36.6%
- Earnings per share grew by 46.8% annually over the last two years and trumped its peers
Advanced Energy is trading at $281.01 per share, or 20.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
