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. On that note, here are two growth stocks with significant upside potential and one that could be down big.
One Growth Stock to Sell:
Renasant (RNST)
One-Year Revenue Growth: +33.4%
Founded in 1904 during a time when the South was rebuilding its economy, Renasant (NYSE: RNST) is a regional bank holding company that offers banking, wealth management, insurance, and specialized lending services throughout the Southeast.
Why Does RNST Worry Us?
- Sales trends were unexciting over the last five years as its 6.3% annual growth was below the typical banking company
- Earnings per share fell by 6.9% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- 4.5% annual tangible book value per share growth over the last two years was slower than its banking peers
Renasant’s stock price of $37.05 implies a valuation ratio of 0.9x forward P/B. To fully understand why you should be careful with RNST, check out our full research report (it’s free for active Edge members).
Two Growth Stocks to Buy:
Ares (ARES)
One-Year Revenue Growth: +24%
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE: ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Why Will ARES Beat the Market?
- Market share has increased this cycle as its 19.2% annual revenue growth over the last five years was exceptional
- Fee-related earnings increased by 33.6% annually over the last five years as it refined its cost structure
- Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 17.9% annually
At $176.76 per share, Ares trades at 29.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Piper Sandler (PIPR)
One-Year Revenue Growth: +16.2%
Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE: PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.
Why Are We Backing PIPR?
- Impressive 17.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Additional sales over the last two years increased its profitability as the 35.2% annual growth in its earnings per share outpaced its revenue
- Impressive 12.8% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle
Piper Sandler is trading at $366.18 per share, or 21.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
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 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
