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.
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. Keeping that in mind, here are two growth stocks expanding their competitive advantages and one facing an uphill battle.
One growth stock to sell:
TowneBank (TOWN)
One-year revenue growth: +23.6%
Founded in 1998 with a commitment to community-centered banking in the Hampton Roads region, TowneBank (NASDAQ: TOWN) is a community-focused financial institution providing banking, lending, and wealth management services to individuals and businesses in Virginia and North Carolina.
Why Are We Cautious About TOWN?
- Annual revenue growth of 5.6% over the last five years was below our standards for the banking sector
- Expenses have increased as a percentage of revenue over the last five years as its efficiency ratio degraded by 16.1 percentage points
- Performance over the past five years shows its incremental sales were less profitable, as its 1.3% annual earnings per share growth trailed its revenue gains
TowneBank’s stock price of $36.62 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why TOWN doesn’t pass our bar.
Two growth stocks to watch:
AAON (AAON)
One-year revenue growth: +53.5%
Backed by two million square feet of lab testing space, AAON (NASDAQ: AAON) makes heating, ventilation, and air conditioning equipment for different types of buildings.
Why Could AAON Be a Winner?
- Demand is greater than supply as the company’s 93.5% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Industry-leading 17.4% return on capital demonstrates management’s skill in finding high-return investments
At $54.40 per share, AAON trades at 21.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
QuinStreet (QNST)
One-year revenue growth: +29.5%
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 36.1% over the last two years was superb and indicates its market share increased during this cycle
- Free cash flow margin grew by 5.1 percentage points over the last five years, giving the company more chips to play with
- Improving returns on capital suggest its past investments are beginning to deliver value
QuinStreet is trading at $18.60 per share, or 11.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-quality stocks for all market conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
