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.
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 three growth stocks facing an uphill battle and some other opportunities you should consider instead.
Rush Street Interactive (RSI)
One-Year Revenue Growth: +28.2%
Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.
Why Should You Dump RSI?
- Annual revenue growth of 28.5% over the last five years was below our standards for the consumer discretionary sector
- Subpar operating margin of 6.9% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Free cash flow margin is expected to increase by 1.2 percentage points next year, suggesting the company will have more capital to invest or return to shareholders
Rush Street Interactive is trading at $29.49 per share, or 45.2x forward P/E. Dive into our free research report to see why there are better opportunities than RSI.
Old National Bank (ONB)
One-Year Revenue Growth: +41.2%
Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ: ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.
Why Does ONB Fall Short?
- Inferior net interest margin of 3.5% means it must compensate for lower profitability through increased loan originations
- Incremental sales over the last five years were less profitable as its 5.8% annual earnings per share growth lagged its revenue gains
- Annual tangible book value per share growth of 4% over the last five years was below our standards for the banking sector
Old National Bank’s stock price of $25.33 implies a valuation ratio of 1.1x forward P/B. If you’re considering ONB for your portfolio, see our FREE research report to learn more.
Solaris Energy Infrastructure (SEI)
One-Year Revenue Growth: +86.3%
After acquiring Mobile Energy Rentals in 2024 to enter the distributed power market, Solaris Energy Infrastructure (NYSE: SEI) leases mobile power equipment and provides logistics services for oil and gas well completion.
Why Is SEI Not Exciting?
- Revenue base of $692.1 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 40.6%
- Cash burn makes us question whether it can achieve sustainable long-term growth
At $78.78 per share, Solaris Energy Infrastructure trades at 71.8x forward P/E. Check out our free in-depth research report to learn more about why SEI doesn’t pass our bar.
Stocks We Like More
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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
