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 is one growth stock expanding its competitive advantage and two that could be down big.
Two Growth Stocks to Sell:
ACV Auctions (ACVA)
One-Year Revenue Growth: +30.1%
Founded in 2014, ACV Auctions (NASDAQ: ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.
Why Does ACVA Fall Short?
- High servicing costs result in an inferior gross margin of 26.2% that must be offset through higher volumes
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
ACV Auctions’s stock price of $11.51 implies a valuation ratio of 19.1x forward EV/EBITDA. Read our free research report to see why you should think twice about including ACVA in your portfolio.
Clover Health (CLOV)
One-Year Revenue Growth: +21.7%
Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ: CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.
Why Does CLOV Give Us Pause?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 18.1% annually over the last two years
- Subscale operations are evident in its revenue base of $1.61 billion, meaning it has fewer distribution channels than its larger rivals
- Cash burn makes us question whether it can achieve sustainable long-term growth
At $2.55 per share, Clover Health trades at 18x forward P/E. To fully understand why you should be careful with CLOV, check out our full research report (it’s free).
One Growth Stock to Watch:
Boston Scientific (BSX)
One-Year Revenue Growth: +21.4%
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Does BSX Catch Our Eye?
- Core business can prosper without any help from acquisitions as its organic revenue growth averaged 15.6% over the past two years
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Additional sales over the last five years increased its profitability as the 18.4% annual growth in its earnings per share outpaced its revenue
Boston Scientific is trading at $103.98 per share, or 34.2x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 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.
