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 climbing an uphill battle.

Two Growth Stocks to Sell:

Zillow (ZG)

One-Year Revenue Growth: +15.2%

Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ: ZG) is the leading U.S. online real estate marketplace.

Why Should You Dump ZG?

1. Products and services have few die-hard fans as sales have declined by 6.6% annually over the last five years
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $62.23 per share, Zillow trades at 31x forward P/E. Read our free research report to see why you should think twice about including ZG in your portfolio.

Phibro Animal Health (PAHC)

One-Year Revenue Growth: +17.6%

With a portfolio of approximately 800 product lines serving farmers and veterinarians in 90 countries, Phibro Animal Health (NASDAQ: PAHC) develops, manufactures, and markets health products for livestock and companion animals, including antibacterials, vaccines, nutritional supplements, and mineral additives.

Why Do We Think Twice About PAHC?

1. Smaller revenue base of $1.4 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
2. Low free cash flow margin of 1.2% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Phibro Animal Health’s stock price of $40.15 implies a valuation ratio of 13.8x forward P/E. To fully understand why you should be careful with PAHC, check out our full research report (it’s free).

One Growth Stock to Buy:

Construction Partners (ROAD)

One-Year Revenue Growth: +54.2%

Founded in 2001, Construction Partners (NASDAQ: ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.

Why Will ROAD Beat the Market?

1. Notable projected revenue growth of 22.4% for the next 12 months hints at market share gains
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 53.7% annually, topping its revenue gains
3. Free cash flow margin expanded by 6.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Construction Partners is trading at $109.87 per share, or 39.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

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 5 Strong Momentum 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.