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.
Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. On that note, here is one growth stock expanding its competitive advantage and two whose momentum may slow.
Two Growth Stocks to Sell:
Collegium Pharmaceutical (COLL)
One-Year Revenue Growth: +26.3%
Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ:COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.
Why Is COLL Not Exciting?
- Subscale operations are evident in its revenue base of $757.1 million, meaning it has fewer distribution channels than its larger rivals
- Diminishing returns on capital suggest its earlier profit pools are drying up
Collegium Pharmaceutical’s stock price of $48.68 implies a valuation ratio of 6.4x forward P/E. Dive into our free research report to see why there are better opportunities than COLL.
Seacoast Banking (SBCF)
One-Year Revenue Growth: +15.4%
Founded during the Florida land boom of 1926 and surviving the Great Depression, Seacoast Banking Corporation of Florida (NASDAQ:SBCF) is a financial holding company that provides commercial and retail banking, wealth management, and mortgage services throughout Florida.
Why Is SBCF Risky?
- Muted 1.5% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 1.5% annually
- Projected tangible book value per share decline of 1.8% for the next 12 months points to tough credit quality challenges ahead
At $32.85 per share, Seacoast Banking trades at 1.2x forward P/B. If you’re considering SBCF for your portfolio, see our FREE research report to learn more.
One Growth Stock to Watch:
Live Oak Bancshares (LOB)
One-Year Revenue Growth: +15.6%
Founded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares (NYSE:LOB) is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide.
Why Are We Positive On LOB?
- Annual net interest income growth of 19.9% over the past five years was outstanding, reflecting market share gains this cycle
- Productivity and efficiency ratio profits are expected to increase next year as some fixed cost leverage kicks in
- Annual tangible book value per share growth of 10.8% over the past five years was outstanding, reflecting strong capital accumulation this cycle
Live Oak Bancshares is trading at $35.24 per share, or 1.4x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.