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. On that note, here is one growth stock expanding its competitive advantage and two whose momentum may slow.
Two Growth Stocks to Sell:
Palo Alto Networks (PANW)
One-Year Revenue Growth: +19.5%
Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks (NASDAQ:PANW) provides AI-powered cybersecurity platforms that protect organizations' networks, clouds, and endpoints from sophisticated threats.
Why Do We Think Twice About PANW?
- Gross margin of 72% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
- Efficiency has decreased over the last year as its operating margin fell by 1.5 percentage points
Palo Alto Networks is trading at $277.75 per share, or 16.8x forward price-to-sales. If you’re considering PANW for your portfolio, see our FREE research report to learn more.
Customers Bancorp (CUBI)
One-Year Revenue Growth: +21%
Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE:CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.
Why Is CUBI Not Exciting?
- Sales trends were unexciting over the last two years as its 7.6% annual growth was below the typical banking company
- Net interest margin of 3.3% is well below other banks, signaling its loans aren’t very profitable
- Annual earnings per share growth of 3.1% underperformed its revenue over the last two years, showing its incremental sales were less profitable
At $74.14 per share, Customers Bancorp trades at 1x forward P/B. Dive into our free research report to see why there are better opportunities than CUBI.
One Growth Stock to Watch:
Waters Corporation (WAT)
One-Year Revenue Growth: +26.4%
Founded in 1958 and pioneering innovations in laboratory analysis for over six decades, Waters (NYSE:WAT) develops and manufactures analytical instruments, software, and consumables for liquid chromatography, mass spectrometry, and thermal analysis used in scientific research and quality testing.
Why Does WAT Catch Our Eye?
- Annual revenue growth of 13.9% over the last two years beat the sector average and underscores the unique value of its offerings
- Market share is on track to rise over the next 12 months as its 80.3% projected revenue growth implies demand will accelerate from its two-year trend
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Waters Corporation’s stock price of $376.45 implies a valuation ratio of 25.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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.
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