Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. Keeping that in mind, here are two growth stocks expanding their competitive advantages and one that could be down big.
One Growth Stock to Sell:
First Busey (BUSE)
One-Year Revenue Growth: +60%
Tracing its roots back to 1868 during America's post-Civil War reconstruction era, First Busey (NASDAQ: BUSE) is a bank holding company that provides commercial and retail banking, wealth management, and payment technology solutions across Illinois, Missouri, Florida, and Indiana.
Why Does BUSE Worry Us?
- Weak unit economics are reflected in its net interest margin of 3.4%, one of the worst among bank companies
- Performance over the past five years shows its incremental sales were less profitable, as its 1.9% annual earnings per share growth trailed its revenue gains
- Estimated tangible book value per share decline of 3.1% for the next 12 months implies a challenging profitability environment
First Busey is trading at $26.24 per share, or 1x forward P/B. If you’re considering BUSE for your portfolio, see our FREE research report to learn more.
Two Growth Stocks to Buy:
LPL Financial (LPLA)
One-Year Revenue Growth: +38.1%
As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ: LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
Why Should You Buy LPLA?
- Impressive 32.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Performance over the past five years was turbocharged 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
At $320.72 per share, LPL Financial trades at 13.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Diamondback Energy (FANG)
One-Year Revenue Growth: +18.1%
Sporting one of Wall Street's most memorable ticker symbols, Diamondback Energy (NASDAQ: FANG) drills for and produces oil and natural gas from underground rock formations in the Permian Basin of West Texas and New Mexico.
Why Will FANG Beat the Market?
- Annual revenue growth of 42.8% over the last ten years was superb and indicates its market share increased during this cycle
- Highly-profitable operating model results in strong unit economics and a best-in-class gross margin of 81.5%
- Robust free cash flow margin of 37.1% gives it many options for capital deployment
Diamondback Energy’s stock price of $211.40 implies a valuation ratio of 11.6x forward P/E. Is now the time to initiate a position? See for yourself 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 meeting 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
