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1 Growth Stock with Explosive Upside and 2 We Avoid

BEN Cover Image

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 expanding its competitive advantage and two climbing an uphill battle.

Two Growth Stocks to Sell:

Franklin Resources (BEN)

One-Year Revenue Growth: +9.3%

Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE: BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.

Why Is BEN Risky?

  1. Incremental sales over the last five years were much less profitable as its earnings per share fell by 2.5% annually while its revenue grew
  2. Low return on equity reflects management’s struggle to allocate funds effectively

Franklin Resources is trading at $27.60 per share, or 10.3x forward P/E. Dive into our free research report to see why there are better opportunities than BEN.

Hamilton Insurance Group (HG)

One-Year Revenue Growth: +21.9%

Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE: HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.

Why Is HG Not Exciting?

  1. Estimated sales decline of 2% for the next 12 months implies a challenging demand environment
  2. Operational productivity has decreased over the last two years as its combined ratio worsened by 5.9 percentage points
  3. Earnings per share have dipped by 56.9% annually over the past one years, which is concerning because stock prices follow EPS over the long term

At $30.11 per share, Hamilton Insurance Group trades at 1.1x forward P/B. To fully understand why you should be careful with HG, check out our full research report (it’s free).

One Growth Stock to Buy:

Progressive (PGR)

One-Year Revenue Growth: +16.3%

Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE: PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.

Why Is PGR a Good Business?

  1. Net premiums earned expanded by 18% annually over the last two years, demonstrating exceptional market penetration this cycle
  2. Additional sales over the last two years increased its profitability as the 72.1% annual growth in its earnings per share outpaced its revenue
  3. Capital strength is on track to rise over the next 12 months as its 31.5% projected book value per share growth implies profitability will accelerate from its two-year trend

Progressive’s stock price of $201.38 implies a valuation ratio of 3.1x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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