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. Keeping that in mind, here is one growth stock with significant upside potential and two whose momentum may slow.
Two Growth Stocks to Sell:
MongoDB (MDB)
One-Year Revenue Growth: +23.6%
Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ: MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.
Why Does MDB Worry Us?
- Complex implementation process for enterprise clients means customers take longer to ramp up, as seen in its extended payback periods
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 4 percentage points
MongoDB’s stock price of $296.96 implies a valuation ratio of 8x forward price-to-sales. Check out our free in-depth research report to learn more about why MDB doesn’t pass our bar.
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 Is BUSE Not Exciting?
- Weak unit economics are reflected in its net interest margin of 3.4%, one of the worst among bank companies
- Incremental sales over the last five years were less profitable as its 1.9% annual earnings per share growth lagged its revenue gains
- Estimated tangible book value per share decline of 3.1% for the next 12 months implies a challenging profitability environment
At $29.40 per share, First Busey trades at 1.1x forward P/B. Read our free research report to see why you should think twice about including BUSE in your portfolio.
One Growth Stock to Buy:
Graham Corporation (GHM)
One-Year Revenue Growth: +16.9%
Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE: GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.
Why Will GHM Outperform?
- Annual revenue growth of 20.3% over the past five years was outstanding, reflecting market share gains this cycle
- Operating margin expanded by 13.5 percentage points over the last five years as it scaled and became more efficient
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 31.5% over the last two years outstripped its revenue performance
Graham Corporation is trading at $122.77 per share, or 62.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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.
