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2 Growth Stocks with All-Star Potential and 1 That Underwhelm

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Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.

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 where the best is yet to come and one climbing an uphill battle.

One Growth Stock to Sell:

FB Financial (FBK)

One-Year Revenue Growth: +21.2%

Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE: FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.

Why Do We Think Twice About FBK?

  1. Muted 1.9% annual revenue growth over the last five years shows its demand lagged behind its banking peers
  2. Estimated net interest income growth of 4.9% for the next 12 months implies demand will slow from its five-year trend
  3. Earnings per share lagged its peers over the last five years as they only grew by 2.4% annually

FB Financial is trading at $52.25 per share, or 1.2x forward P/B. To fully understand why you should be careful with FBK, check out our full research report (it’s free).

Two Growth Stocks to Watch:

Standex (SXI)

One-Year Revenue Growth: +21%

Holding over 500 patents globally, Standex (NYSE: SXI) is a manufacturer and distributor of industrial components for various sectors.

Why Are We Positive On SXI?

  1. Offerings are mission-critical for businesses and result in a premier gross margin of 38.8%
  2. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 15%, and its rise over the last five years was fueled by some leverage on its fixed costs
  3. Share buybacks catapulted its annual earnings per share growth to 18.1%, which outperformed its revenue gains over the last five years

At $254.91 per share, Standex trades at 26.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Capital One (COF)

One-Year Revenue Growth: +37.1%

Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE: COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.

Why Could COF Be a Winner?

  1. Annual revenue growth of 20.8% over the last two years was superb and indicates its market share increased during this cycle
  2. Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 27.6% outpaced its revenue gains
  3. Acceptable return on equity suggests management generated shareholder value by investing in profitable projects

Capital One’s stock price of $183.57 implies a valuation ratio of 8.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum 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.

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