Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. That said, here is one growth stock with significant upside potential and two whose momentum may slow.
Two Growth Stocks to Sell:
Lindblad Expeditions (LIND)
One-Year Revenue Growth: +18.3%
Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ: LIND) offers cruising experiences to remote destinations in partnership with National Geographic.
Why Do We Avoid LIND?
- Sales trends were unexciting over the last two years as its 18.5% annual growth was below the typical consumer discretionary company
- Poor expense management has led to an operating margin of 6.9% that is below the industry average
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 4 percentage points
Lindblad Expeditions’s stock price of $31.07 implies a valuation ratio of 117.6x forward P/E. Dive into our free research report to see why there are better opportunities than LIND.
Pangaea (PANL)
One-Year Revenue Growth: +22.5%
Established in 1996, Pangaea Logistics (NASDAQ: PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes.
Why Does PANL Fall Short?
- Gross margin of 19.8% reflects its high production costs
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 4.9 percentage points
- Earnings per share have dipped by 23.4% annually over the past four years, which is concerning because stock prices follow EPS over the long term
Pangaea is trading at $8.14 per share, or 8.8x forward P/E. Check out our free in-depth research report to learn more about why PANL doesn’t pass our bar.
One Growth Stock to Watch:
PJT (PJT)
One-Year Revenue Growth: +22.9%
Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners (NYSE: PJT) is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.
Why Is PJT on Our Radar?
- Impressive 20.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 42.2% to outpace its revenue gains
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $174.94 per share, PJT trades at 20.5x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
