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.
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 where the best is yet to come and two whose momentum may slow.
Two Growth Stocks to Sell:
ThredUp (TDUP)
One-Year Revenue Growth: +20.4%
Founded to revolutionize thrifting, ThredUp (NASDAQ:TDUP) is a leading online fashion resale marketplace offering a wide selection of gently-used clothing and accessories.
Why Do We Pass on TDUP?
- Demand for its offerings was relatively low as its number of orders has underwhelmed
- Historical operating margin losses point to an inefficient cost structure
- Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year
At $2.45 per share, ThredUp trades at 17.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including TDUP in your portfolio.
Excelerate Energy (EE)
One-Year Revenue Growth: +49%
Operating specialized vessels that can deliver up to 1.2 billion cubic feet of natural gas per day, Excelerate Energy (NYSE:EE) provides liquified natural gas regasification services using floating vessels that convert LNG back into natural gas.
Why Do We Think Twice About EE?
- Modest revenue base of $1.47 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Gross margin of 29.9% is below its competitors, leaving less money to invest in exploration and production
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Excelerate Energy’s stock price of $34.36 implies a valuation ratio of 17.7x forward P/E. Check out our free in-depth research report to learn more about why EE doesn’t pass our bar.
One Growth Stock to Buy:
Corpay (CPAY)
One-Year Revenue Growth: +20.4%
Formerly known as FLEETCOR until its 2024 rebrand, Corpay (NYSE:CPAY) provides specialized payment solutions for businesses to manage vehicle expenses, corporate payments, and lodging costs with enhanced control and reporting capabilities.
What Makes CPAY Stand Out?
- Annual revenue growth of 15.2% over the past five years was outstanding, reflecting market share gains this cycle
- Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Corpay is trading at $397.97 per share, or 13.7x forward P/E. Is now a good 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.
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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.