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. Keeping that in mind, here is one growth stock expanding its competitive advantage and two that could be down big.
Two Growth Stocks to Sell:
Commvault (CVLT)
One-Year Revenue Growth: +15.5%
Born from the need to create ironclad protection in an increasingly dangerous digital world, Commvault (NASDAQ: CVLT) provides data protection and cyber resilience software that helps organizations secure, back up, and recover their data across on-premises, hybrid, and multi-cloud environments.
Why Is CVLT Not Exciting?
- Offerings struggled to generate meaningful interest as its average billings growth of 12.2% over the last year did not impress
- Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
- Efficiency fell over the last year as its operating margin declined by 1.5 percentage points because it pursued growth instead of profits
Commvault’s stock price of $139.75 implies a valuation ratio of 4.2x forward price-to-sales. If you’re considering CVLT for your portfolio, see our FREE research report to learn more.
Enova (ENVA)
One-Year Revenue Growth: +17.7%
Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International (NYSE: ENVA) provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.
Why Does ENVA Give Us Pause?
- Incremental sales over the last five years were less profitable as its 8.8% annual earnings per share growth lagged its revenue gains
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Enova is trading at $249.74 per share, or 13.3x forward P/E. Check out our free in-depth research report to learn more about why ENVA doesn’t pass our bar.
One Growth Stock to Buy:
QuinStreet (QNST)
One-Year Revenue Growth: +18.3%
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Is QNST a Good Business?
- Annual revenue growth of 45.2% over the last two years was superb and indicates its market share increased during this cycle
- Free cash flow margin increased by 5.4 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Rising returns on capital show the company is starting to reap the benefits of its past investments
At $21.87 per share, QuinStreet trades at 13.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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 Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
