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.
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 is one growth stock with significant upside potential and two climbing an uphill battle.
Two Growth Stocks to Sell:
The Real Brokerage (REAX)
One-Year Revenue Growth: +65.6%
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
Why Do We Pass on REAX?
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 6.2% annually while its revenue grew
- Free cash flow margin is not anticipated to grow over the next year
The Real Brokerage’s stock price of $2.88 implies a valuation ratio of 8.2x forward EV-to-EBITDA. If you’re considering REAX for your portfolio, see our FREE research report to learn more.
Tutor Perini (TPC)
One-Year Revenue Growth: +19.2%
Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE:TPC) is a civil and building construction company offering diversified general contracting and design-build services.
Why Do We Think Twice About TPC?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Gross margin of 6.7% reflects its high production costs
- Performance over the past five years was negatively impacted by new share issuances as its earnings per share fell by 18.8% annually while its revenue was flat
At $85.08 per share, Tutor Perini trades at 19.5x forward P/E. Check out our free in-depth research report to learn more about why TPC doesn’t pass our bar.
One Growth Stock to Buy:
Meta (META)
One-Year Revenue Growth: +22.2%
Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ:META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.
Why Should You Buy META?
- Customer spending is rising as the company has focused on monetization over the last two years, leading to 14.8% annual growth in its average revenue per user
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 51.3% exceeded its revenue gains over the last three years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
Meta is trading at $668.70 per share, or 12.1x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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.