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. That said, here is one growth stock expanding its competitive advantage and two that could be down big.
Two Growth Stocks to Sell:
EVgo (EVGO)
One-Year Revenue Growth: +49.6%
Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ: EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.
Why Does EVGO Worry Us?
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
EVgo is trading at $1.97 per share, or 29.3x forward EV-to-EBITDA. If you’re considering EVGO for your portfolio, see our FREE research report to learn more.
Affirm (AFRM)
One-Year Revenue Growth: +32.7%
Founded by PayPal co-founder Max Levchin with a mission to create honest financial products, Affirm (NASDAQ: AFRM) provides a payment network that allows consumers to make purchases and pay for them over time with transparent, flexible installment loans.
Why Is AFRM Not Exciting?
- Negative return on equity shows management lost money while trying to expand the business
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $46.32 per share, Affirm trades at 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than AFRM.
One Growth Stock to Watch:
Dynatrace (DT)
One-Year Revenue Growth: +18.2%
With its platform processing over 30 trillion pieces of IT performance data daily, Dynatrace (NYSE: DT) provides an AI-powered platform that helps organizations monitor, secure, and optimize their applications and IT infrastructure across cloud environments.
Why Could DT Be a Winner?
- Billings have averaged 22.5% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Superior software functionality and low servicing costs are reflected in its stellar gross margin of 81.7%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Dynatrace’s stock price of $38.24 implies a valuation ratio of 5.2x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
