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.
The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here are two growth stocks expanding their competitive advantages and one climbing an uphill battle.
One Growth Stock to Sell:
Synovus Financial (SNV)
One-Year Revenue Growth: +22.7%
Tracing its roots back to 1888 when a worker accidentally dropped a textile mill payroll into the dust, prompting the need for better banking, Synovus Financial (NYSE: SNV) is a regional financial services company that provides commercial and consumer banking, wealth management, and specialized lending services across five southeastern states.
Why Does SNV Fall Short?
- 4% annual net interest income growth over the last five years was slower than its banking peers
- Anticipated net interest income growth of 5.6% for the next year implies demand will be shaky
- Net interest margin of 3.2% reflects its high servicing and capital costs
Synovus Financial is trading at $49.27 per share, or 1.3x forward P/B. Read our free research report to see why you should think twice about including SNV in your portfolio.
Two Growth Stocks to Watch:
DoubleVerify (DV)
One-Year Revenue Growth: +16.5%
Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE: DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.
Why Could DV Be a Winner?
- Annual revenue growth of 27.9% over the last five years was superb and indicates its market share is rising
- Software is difficult to replicate at scale and leads to a top-tier gross margin of 82.1%
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
At $12.20 per share, DoubleVerify trades at 2.6x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Kinsale Capital Group (KNSL)
One-Year Revenue Growth: +21.1%
Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE: KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid.
Why Is KNSL a Top Pick?
- Strong 25.9% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Balance sheet strength has increased this cycle as its 40.2% annual book value per share growth over the last two years was exceptional
- Capital strength will likely rise over the next 12 months as its expected book value per share growth of 25.5% is robust
Kinsale Capital Group’s stock price of $416.74 implies a valuation ratio of 5.1x forward P/B. Is now a good time to buy? Find out in our full 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 5 Growth Stocks for this month. 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 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
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