2 Growth Stocks to Stash and 1 Facing Challenges

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.

The risks that can come from buying these assets are precisely why we started StockStory — to isolate the long-term winners from the losers so you can invest with confidence. That said, here are two growth stocks expanding their competitive advantages and one facing an uphill battle.

One Growth Stock to Sell:

Paychex (PAYX)

One-Year Revenue Growth: +16.4%

Once known as the go-to service for small business payroll needs, Paychex (NASDAQ:PAYX) provides payroll processing, HR services, employee benefits administration, and insurance solutions to small and medium-sized businesses.

Why Does PAYX Give Us Pause?

1. Sales trends were unexciting over the last five years as its 9.9% annual growth was well below the typical software company
2. Estimated sales growth of 6.9% for the next 12 months implies demand will slow from its two-year trend
3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 4.6 percentage points

Paychex is trading at $100.59 per share, or 5.4x forward price-to-sales. Read our free research report to see why you should think twice about including PAYX in your portfolio.

Two Growth Stocks to Buy:

Hewlett Packard Enterprise (HPE)

One-Year Revenue Growth: +22.6%

Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE:HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.

Why Is HPE a Top Pick?

1. Offerings are pivotal for their customers’ operations as its ARR has averaged 50.7% growth over the past two years
2. Enormous revenue base of $38.79 billion provides significant distribution advantages
3. Exciting sales outlook for the upcoming 12 months calls for 25.2% growth, an acceleration from its two-year trend

Hewlett Packard Enterprise’s stock price of $54.87 implies a valuation ratio of 12.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Evercore (EVR)

One-Year Revenue Growth: +47.2%

Founded in 1995 as a boutique advisory firm focused on independence and client trust, Evercore (NYSE:EVR) is an independent investment banking firm that provides strategic advisory, capital markets, and wealth management services to corporations, financial sponsors, and high-net-worth individuals.

Why Is EVR a Good Business?

1. Market share has increased this cycle as its 36.6% annual revenue growth over the last two years was exceptional
2. Additional sales over the last two years increased its profitability as the 70.2% annual growth in its earnings per share outpaced its revenue
3. ROE punches in at 33.5%, illustrating management’s expertise in identifying profitable investments

At $347.06 per share, Evercore trades at 19.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.