Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
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. Keeping that in mind, here is one growth stock where the best is yet to come and two whose momentum may slow.
Two Growth Stocks to Sell:
Kura Sushi (KRUS)
One-Year Revenue Growth: +18.8%
Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ: KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology.
Why Does KRUS Fall Short?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Kura Sushi’s stock price of $62.59 implies a valuation ratio of 33.5x forward EV-to-EBITDA. If you’re considering KRUS for your portfolio, see our FREE research report to learn more.
Annaly Capital Management (NLY)
One-Year Revenue Growth: +399%
Operating as a real estate investment trust since 1996 with a focus on generating income from interest rate spreads, Annaly Capital Management (NYSE: NLY) is a diversified capital manager that invests in agency mortgage-backed securities, residential mortgage loans, and mortgage servicing rights.
Why Should You Dump NLY?
- Annual sales declines of 22% for the past five years show its products and services struggled to connect with the market during this cycle
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- Tangible book value per share tumbled by 11.1% annually over the last five years, showing banking sector trends are working against its favor during this cycle
Annaly Capital Management is trading at $20.69 per share, or 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than NLY.
One Growth Stock to Watch:
MongoDB (MDB)
One-Year Revenue Growth: +21.9%
Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ: MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.
Why Are We Positive On MDB?
- Annual revenue growth of 34.6% over the past five years was outstanding, reflecting market share gains
- Ability to secure long-term commitments with customers is evident in its 25.2% ARR growth over the last year
At $318.06 per share, MongoDB trades at 10x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our 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 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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