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 are two growth stocks where the best is yet to come and one that could be down big.
One Growth Stock to Sell:
Western Alliance Bancorporation (WAL)
One-Year Revenue Growth: +16.1%
Operating through five distinct regional banking divisions across the western United States, Western Alliance Bancorporation (NYSE: WAL) provides commercial banking, treasury management, mortgage services, and specialized financial solutions through its banking divisions and subsidiaries.
Why Does WAL Worry Us?
- Projected 5.9 percentage point efficiency ratio increase over the next year signals its day-to-day expenses will rise
- Incremental sales over the last five years were less profitable as its 5.8% annual earnings per share growth lagged its revenue gains
Western Alliance Bancorporation is trading at $77.06 per share, or 1x forward P/B. Read our free research report to see why you should think twice about including WAL in your portfolio.
Two Growth Stocks to Buy:
EMCOR (EME)
One-Year Revenue Growth: +18.3%
Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services
Why Are We Bullish on EME?
- Annual revenue growth of 16.3% over the last two years was superb and indicates its market share increased during this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 40.2% exceeded its revenue gains over the last two years
- Returns on capital are growing as management capitalizes on its market opportunities
At $852.42 per share, EMCOR trades at 28.8x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
WisdomTree (WT)
One-Year Revenue Growth: +25.3%
Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE: WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.
Why Will WT Beat the Market?
- Market share has increased this cycle as its 22.5% annual revenue growth over the last two years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 52% exceeded its revenue gains over the last two years
- Industry-leading 15.2% return on equity demonstrates management’s skill in finding high-return investments
WisdomTree’s stock price of $18.89 implies a valuation ratio of 15.6x 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
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
