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.
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 with significant upside potential and two climbing an uphill battle.
Two Growth Stocks to Sell:
Newmark (NMRK)
One-Year Revenue Growth: +21%
Founded in 1929, Newmark (NASDAQ: NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.
Why Do We Think NMRK Will Underperform?
- Annual revenue growth of 10.3% over the last five years was below our standards for the consumer discretionary sector
- Negative free cash flow raises questions about the return timeline for its investments
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
Newmark is trading at $15.26 per share, or 8.7x forward P/E. If you’re considering NMRK for your portfolio, see our FREE research report to learn more.
Viking (VIK)
One-Year Revenue Growth: +20%
From a single river cruise offering to a fleet of 96 vessels across multiple continents, Viking (NYSE: VIK) operates a fleet of small luxury cruise ships offering river, ocean, and expedition voyages focused on cultural enrichment and destination immersion.
Why Are We Out on VIK?
- Annual revenue growth of 17.1% over the last two years was below our standards for the consumer discretionary sector
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $76.94 per share, Viking trades at 25.1x forward P/E. To fully understand why you should be careful with VIK, check out our full research report (it’s free).
One Growth Stock to Buy:
Robinhood (HOOD)
One-Year Revenue Growth: +51.6%
With a mission to democratize finance, Robinhood (NASDAQ: HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Why Are We Bullish on HOOD?
- Monetization efforts are paying off as its average revenue per user has grown by 198% annually over the last two years
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 63.9% outpaced its revenue gains
- Free cash flow margin expanded by 102.3 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Robinhood’s stock price of $75.71 implies a valuation ratio of 22.1x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
