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.
Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. On that note, here is one growth stock expanding its competitive advantage and two whose momentum may slow.
Two Growth Stocks to Sell:
Collegium Pharmaceutical (COLL)
One-Year Revenue Growth: +26.3%
Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ: COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.
Why Is COLL Not Exciting?
- Subscale operations are evident in its revenue base of $757.1 million, meaning it has fewer distribution channels than its larger rivals
- Diminishing returns on capital suggest its earlier profit pools are drying up
Collegium Pharmaceutical’s stock price of $48.68 implies a valuation ratio of 6.4x forward P/E. Dive into our free research report to see why there are better opportunities than COLL.
Seacoast Banking (SBCF)
One-Year Revenue Growth: +15.4%
Founded during the Florida land boom of 1926 and surviving the Great Depression, Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is a financial holding company that provides commercial and retail banking, wealth management, and mortgage services throughout Florida.
Why Is SBCF Risky?
- Muted 1.5% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 1.5% annually
- Projected tangible book value per share decline of 1.8% for the next 12 months points to tough credit quality challenges ahead
At $32.85 per share, Seacoast Banking trades at 1.2x forward P/B. If you’re considering SBCF for your portfolio, see our FREE research report to learn more.
One Growth Stock to Watch:
Live Oak Bancshares (LOB)
One-Year Revenue Growth: +15.6%
Founded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares (NYSE: LOB) is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide.
Why Are We Positive On LOB?
- Annual net interest income growth of 19.9% over the past five years was outstanding, reflecting market share gains this cycle
- Productivity and efficiency ratio profits are expected to increase next year as some fixed cost leverage kicks in
- Annual tangible book value per share growth of 10.8% over the past five years was outstanding, reflecting strong capital accumulation this cycle
Live Oak Bancshares is trading at $35.24 per share, or 1.4x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 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-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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