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.
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 are two growth stocks where the best is yet to come and one whose momentum may slow.
One Growth Stock to Sell:
Rush Street Interactive (RSI)
One-Year Revenue Growth: +27%
Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.
Why Does RSI Give Us Pause?
- Poor expense management has led to an operating margin of 2.6% that is below the industry average
Rush Street Interactive is trading at $22.44 per share, or 59.5x forward P/E. Dive into our free research report to see why there are better opportunities than RSI.
Two Growth Stocks to Buy:
The Trade Desk (TTD)
One-Year Revenue Growth: +23.2%
Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ: TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.
Why Should You Buy TTD?
- Annual revenue growth of 24.4% over the last two years was superb and indicates its market share is rising
- Average billings growth of 22.7% over the last year enhances its liquidity and shows there is steady demand for its products
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
At $49.70 per share, The Trade Desk trades at 8.1x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Pinterest (PINS)
One-Year Revenue Growth: +17%
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Why Will PINS Outperform?
- Monthly Active Users have grown by 10.8% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 27.8%, and its profits increased over the last few years as it scaled
- Strong free cash flow margin of 25.6% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
Pinterest’s stock price of $33.49 implies a valuation ratio of 17.3x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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
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