Growth is oxygen. But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.

Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. Keeping that in mind, here is one growth stock with significant upside potential and two whose momentum may slow.

Two Growth Stocks to Sell:

DraftKings (DKNG)

One-Year Revenue Growth: +27%

Getting its start in daily fantasy sports, DraftKings (NASDAQ: DKNG) is a digital sports entertainment and gaming company.

Why Are We Out on DKNG?

1. Sales trends were unexciting over the last two years as its 28.5% annual growth was below the typical consumer discretionary company
2. Suboptimal cost structure is highlighted by its history of operating margin losses
3. Free cash flow margin is projected to show no improvement next year

DraftKings is trading at $26.05 per share, or 22.4x forward P/E. Read our free research report to see why you should think twice about including DKNG in your portfolio.

The Pennant Group (PNTG)

One-Year Revenue Growth: +36.4%

Spun off from The Ensign Group in 2019 to focus on non-skilled nursing healthcare services, Pennant Group (NASDAQ: PNTG) operates home health, hospice, and senior living facilities across 13 western and midwestern states, serving patients of all ages including seniors.

Why Does PNTG Worry Us?

1. Revenue base of $941.5 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
2. Poor free cash flow margin of 2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate

The Pennant Group’s stock price of $34.05 implies a valuation ratio of 25.5x forward P/E. If you’re considering PNTG for your portfolio, see our FREE research report to learn more.

One Growth Stock to Buy:

CBIZ (CBZ)

One-Year Revenue Growth: +52.1%

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 Should You Buy CBZ?

1. Impressive 31.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 21.4% annually

At $25.65 per share, CBIZ trades at 7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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.