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3 Growth Stocks We Think Twice About

MTRX 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.

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. That said, here are three growth stocks whose best days may be over and some alternatives you should consider instead.

Matrix Service (MTRX)

One-Year Revenue Growth: +18.4%

Founded in Oklahoma, Matrix Service (NASDAQ: MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.

Why Are We Cautious About MTRX?

  1. 1.1% annual revenue growth over the last five years was slower than its industrials peers
  2. Gross margin of 3.7% is below its competitors, leaving less money to invest in areas like marketing and R&D
  3. Earnings per share fell by 21.4% annually over the last five years while its revenue grew, partly because it diluted shareholders

Matrix Service is trading at $11.45 per share, or 16.8x forward P/E. If you’re considering MTRX for your portfolio, see our FREE research report to learn more.

Franklin BSP Realty Trust (FBRT)

One-Year Revenue Growth: +51.1%

Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE: FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.

Why Should You Sell FBRT?

  1. Annual net interest income growth of 6.1% over the last five years was below our standards for the banking sector
  2. Earnings per share have dipped by 51.5% annually over the past three years, which is concerning because stock prices follow EPS over the long term
  3. Annual tangible book value per share declines of 7.5% for the past five years show its capital management struggled during this cycle

At $9.27 per share, Franklin BSP Realty Trust trades at 0.6x forward P/B. Read our free research report to see why you should think twice about including FBRT in your portfolio.

Bunge Global (BG)

One-Year Revenue Growth: +32.4%

With origins dating back to 1818 and operations spanning both hemispheres to balance seasonal harvests, Bunge Global (NYSE: BG) is an agribusiness and food company that processes oilseeds, grains, and other agricultural commodities into vegetable oils, protein meals, flours, and specialty ingredients.

Why Does BG Give Us Pause?

  1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 1.5% for the last three years
  2. Incremental sales over the last three years were much less profitable as its earnings per share fell by 19.1% annually while its revenue grew
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Bunge Global’s stock price of $118.84 implies a valuation ratio of 15.1x forward P/E. To fully understand why you should be careful with BG, check out our full research report (it’s free).

Stocks We Like More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. 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.

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