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. On that note, here is one growth stock expanding its competitive advantage and two whose momentum may slow.
Two Growth Stocks to Sell:
EverQuote (EVER)
One-Year Revenue Growth: +57.8%
Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Why Do We Think Twice About EVER?
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
At $25.53 per share, EverQuote trades at 7.9x forward EV/EBITDA. If you’re considering EVER for your portfolio, see our FREE research report to learn more.
Bel Fuse (BELFA)
One-Year Revenue Growth: +23.7%
Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ: BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.
Why Are We Wary of BELFA?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.5% annually over the last two years
- Earnings per share have contracted by 6.9% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
Bel Fuse is trading at $167.61 per share, or 24.8x forward P/E. Read our free research report to see why you should think twice about including BELFA in your portfolio.
One Growth Stock to Watch:
NerdWallet (NRDS)
One-Year Revenue Growth: +24.7%
Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet (NASDAQ: NRDS) is a digital platform that provides financial guidance to help consumers and small businesses make smarter decisions about credit cards, loans, insurance, and other financial products.
Why Do We Like NRDS?
- Annual revenue growth of 26.5% over the past five years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 266% annual growth in its earnings per share outpaced its revenue
NerdWallet’s stock price of $13.90 implies a valuation ratio of 9.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
