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. Keeping that in mind, here is one growth stock expanding its competitive advantage and two whose momentum may slow.
Two Growth Stocks to Sell:
Workiva (WK)
One-Year Revenue Growth: +19.9%
Nicknamed "the Excel killer" by some finance professionals for its ability to eliminate spreadsheet chaos, Workiva (NYSE: WK) provides a cloud-based platform that enables organizations to streamline financial reporting, ESG, and compliance processes with connected data and automation.
Why Are We Hesitant About WK?
- Operating margin improvement of 2.8 percentage points over the last year demonstrates its ability to scale efficiently
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 2.4 percentage points
At $90.53 per share, Workiva trades at 5.2x forward price-to-sales. Read our free research report to see why you should think twice about including WK in your portfolio.
KeyCorp (KEY)
One-Year Revenue Growth: +20.7%
Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.
Why Is KEY Not Exciting?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- 2.5% annual net interest income growth over the last five years was slower than its banking peers
- Net interest margin of 2.4% is well below other banks, signaling its loans aren’t very profitable
KeyCorp’s stock price of $17.84 implies a valuation ratio of 1.1x forward P/B. To fully understand why you should be careful with KEY, check out our full research report (it’s free for active Edge members).
One Growth Stock to Buy:
CBIZ (CBZ)
One-Year Revenue Growth: +59.2%
With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE: CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations.
Why Do We Love CBZ?
- Annual revenue growth of 31% over the last two years was superb and indicates its market share increased during this cycle
- Projected revenue growth of 10% for the next 12 months suggests its momentum from the last two years will persist
- Earnings per share grew by 28.3% annually over the last two years and trumped its peers
CBIZ is trading at $51.17 per share, or 12.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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-micro-cap company Kadant (+351% 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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