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.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. Keeping that in mind, here are two growth stocks where the best is yet to come and one facing an uphill battle.
One Growth Stock to Sell:
Eastern Bank (EBC)
One-Year Revenue Growth: +30.8%
Founded in 1818 as one of America's oldest mutual banks before converting to a public company in 2020, Eastern Bankshares (NASDAQ:EBC) operates as a bank holding company providing commercial and retail banking services primarily in Massachusetts, New Hampshire, and Rhode Island.
Why Does EBC Give Us Pause?
- Net interest margin of 3.3% is well below other banks, signaling its loans aren’t very profitable
- Annual tangible book value per share declines of 5.1% for the past five years show its capital management struggled during this cycle
- Low return on equity reflects management’s struggle to allocate funds effectively
At $22.72 per share, Eastern Bank trades at 1.1x forward P/B. Check out our free in-depth research report to learn more about why EBC doesn’t pass our bar.
Two Growth Stocks to Buy:
Blackstone (BX)
One-Year Revenue Growth: +16.2%
With over $1 trillion in assets under management and investments spanning real estate, private equity, credit, and hedge funds, Blackstone (NYSE:BX) is a global alternative asset manager that invests capital on behalf of pension funds, sovereign wealth funds, and other institutional investors.
Why Is BX a Good Business?
- Market share has increased this cycle as its 19% annual revenue growth over the last two years was exceptional
- Additional sales over the last two years increased its profitability as the 21.4% annual growth in its earnings per share outpaced its revenue
Blackstone is trading at $123.50 per share, or 19.8x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Crescent Energy (CRGY)
One-Year Revenue Growth: +18.3%
Controlling over 1.4 million net acres across proven U.S. basins, Crescent Energy (NYSE:CRGY) extracts oil and natural gas from underground reservoirs in Texas and the Rocky Mountains.
Why Are We Bullish on CRGY?
- Annual revenue growth of 41.5% over the last five years was superb and indicates its market share increased during this cycle
- Attractive asset base are reflected in its top-tier gross margin of 59%
- Strong free cash flow margin of 14.8% enables it to reinvest or return capital consistently
Crescent Energy’s stock price of $9.26 implies a valuation ratio of 3.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 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.