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.
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 is one growth stock with significant upside potential and two that could be down big.
Two Growth Stocks to Sell:
Pegasystems (PEGA)
One-Year Revenue Growth: +17%
With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems (NASDAQ: PEGA) develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.
Why Are We Hesitant About PEGA?
- 11.7% annual revenue growth over the last five years was slower than its software peers
- Estimated sales growth of 4.2% for the next 12 months implies demand will slow from its two-year trend
- Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
Pegasystems’s stock price of $50.84 implies a valuation ratio of 5.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PEGA.
Privia Health (PRVA)
One-Year Revenue Growth: +19%
Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ: PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.
Why Does PRVA Fall Short?
- Subscale operations are evident in its revenue base of $2.04 billion, meaning it has fewer distribution channels than its larger rivals
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 4.3% for the last five years
- Push for growth has led to negative returns on capital, signaling value destruction
At $24.20 per share, Privia Health trades at 25.5x forward P/E. If you’re considering PRVA for your portfolio, see our FREE research report to learn more.
One Growth Stock to Buy:
Brown & Brown (BRO)
One-Year Revenue Growth: +22.9%
With roots dating back to 1939 and operations spanning 44 U.S. states and 14 countries, Brown & Brown (NYSE: BRO) is an insurance brokerage and risk management firm that markets and sells insurance products across property, casualty, and employee benefits sectors.
Why Should You Buy BRO?
- Exciting sales outlook for the upcoming 12 months calls for 24.1% growth, an acceleration from its two-year trend
- Earnings per share grew by 23.7% annually over the last two years, massively outpacing its peers
- Strong free cash flow margin of 23.8% enables it to reinvest or return capital consistently
Brown & Brown is trading at $74.36 per share, or 17.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
