Growth is oxygen. But when it evaporates, the consequences can be extreme - ask anyone who bought Cisco in the Dot-Com Bubble (Nvidia?) 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. On that note, here is one growth stock with significant upside potential and two that could be down big.
Two Growth Stocks to Sell:
RTX (RTX)
One-Year Revenue Growth: +15.1%
Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.
Why Does RTX Give Us Pause?
- Estimated sales growth of 4% for the next 12 months implies demand will slow from its two-year trend
- Earnings per share were flat while its revenue grew over the last five years, partly because it issued new shares
- ROIC of 2.5% reflects management’s challenges in identifying attractive investment opportunities
At $140.75 per share, RTX trades at 22.5x forward P/E. Read our free research report to see why you should think twice about including RTX in your portfolio.
Fulton Financial (FULT)
One-Year Revenue Growth: +15.7%
Tracing its roots back to 1882 in the heart of Pennsylvania, Fulton Financial (NASDAQ: FULT) is a financial holding company that provides banking, lending, and wealth management services to consumers and businesses across five Mid-Atlantic states.
Why Does FULT Worry Us?
- Estimated net interest income growth of 3.1% for the next 12 months implies demand will slow from its four-year trend
- Capital trends were unexciting over the last five years as its 4.4% annual tangible book value per share growth was below the typical bank company
- Estimated tangible book value per share growth of 7.3% for the next 12 months implies profitability will slow from its two-year trend
Fulton Financial’s stock price of $17.64 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than FULT.
One Growth Stock to Watch:
Republic Bancorp (RBCAA)
One-Year Revenue Growth: +15%
With roots dating back to 1974 and operating across multiple states including Kentucky, Indiana, Florida, Ohio, and Tennessee, Republic Bancorp (NASDAQGS:RBCA.A) is a Kentucky-based financial holding company that operates a bank offering traditional banking, mortgage services, and specialized financial products.
Why Do We Like RBCAA?
- Impressive 10.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Differentiated product suite is reflected in its Strong performance of its loan book results in a High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 5%
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 13.2% over the last two years outstripped its revenue performance
Republic Bancorp is trading at $69.67 per share, or 1.3x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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.