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. That said, here are two growth stocks where the best is yet to come and one climbing an uphill battle.
One Growth Stock to Sell:
Assured Guaranty (AGO)
One-Year Revenue Growth: +27.3%
Serving as a financial safety net for over $11 trillion in debt service payments since its founding in 2003, Assured Guaranty (NYSE: AGO) provides credit protection products that guarantee scheduled payments on municipal bonds, infrastructure projects, and structured finance obligations.
Why Should You Dump AGO?
- Insurance policy sales contracted this cycle as net premiums earned decreased by 4.8% annually over the last five years
- Forecasted revenue decline of 31.7% for the upcoming 12 months implies demand will fall even further
- Earnings per share have dipped by 8.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term
At $87.51 per share, Assured Guaranty trades at 0.7x forward P/B. To fully understand why you should be careful with AGO, check out our full research report (it’s free).
Two Growth Stocks to Buy:
The Trade Desk (TTD)
One-Year Revenue Growth: +18.5%
Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ: TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.
Why Is TTD a Top Pick?
- Annual revenue growth of 22% over the past two years was outstanding, reflecting market share gains
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Excellent operating margin of 20.3% highlights the efficiency of its business model, and its rise over the last year was fueled by some leverage on its fixed costs
The Trade Desk is trading at $27.45 per share, or 3.7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Piper Sandler (PIPR)
One-Year Revenue Growth: +21.9%
Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE: PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.
Why Are We Backing PIPR?
- Impressive 18.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 38.3% outpaced its revenue gains
- Balance sheet strength has increased this cycle as its 13.4% annual tangible book value per share growth over the last two years was exceptional
Piper Sandler’s stock price of $302.69 implies a valuation ratio of 15.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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 for 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
