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 are precisely why we started StockStory — to isolate the long-term winners from the losers so you can invest with confidence. That said, here are two growth stocks expanding their competitive advantages and one facing an uphill battle.
One Growth Stock to Sell:
Howard Hughes Holdings (HHH)
One-Year Revenue Growth: +34%
Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE: HHH) develops, owns, and manages master-planned communities and commercial properties across the United States.
Why Are We Out on HHH?
- Underwhelming 4.5% return on capital reflects management’s difficulties in finding profitable growth opportunities
- Returns on capital are increasing as management makes relatively better investment decisions
At $60.40 per share, Howard Hughes Holdings trades at 1.5x trailing 12-month price-to-sales. Read our free research report to see why you should think twice about including HHH in your portfolio.
Two Growth Stocks to Buy:
HEICO (HEI)
One-Year Revenue Growth: +20.7%
Founded in 1957, HEICO (NYSE: HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.
Why Is HEI a Top Pick?
- Annual revenue growth of 17% over the last two years was superb and indicates its market share increased during this cycle
- Earnings per share grew by 32.8% annually over the last two years and trumped its peers
- HEI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
HEICO is trading at $298.16 per share, or 42.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
WisdomTree (WT)
One-Year Revenue Growth: +38.3%
Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE: WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.
What Makes WT Stand Out?
- Market share has increased this cycle as its 25.9% annual revenue growth over the last two years was exceptional
- Share repurchases over the last two years enabled its annual earnings per share growth of 49.8% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
WisdomTree’s stock price of $22.99 implies a valuation ratio of 17.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
