1 Growth Stock Set to Flourishand 2 We Find Risky

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. On that note, here is one growth stock expanding its competitive advantage and two climbing an uphill battle.

Two Growth Stocks to Sell:

Marcus & Millichap (MMI)

One-Year Revenue Growth: +20.7%

Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.

Why Do We Steer Clear of MMI?

1. Sales trends were unexciting over the last five years as its 1.3% annual growth was below the typical consumer discretionary company
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 3% for the last two years
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $27.05 per share, Marcus & Millichap trades at 57.8x forward P/E. Check out our free in-depth research report to learn more about why MMI doesn’t pass our bar.

RXO (RXO)

One-Year Revenue Growth: +53.8%

With access to millions of trucks, RXO (NYSE:RXO) offers full-truckload, less-than-truckload, and last-mile deliveries.

Why Does RXO Worry Us?

1. Sales are projected to tank by 2.4% over the next 12 months as demand evaporates
2. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 5 percentage points
3. Incremental sales over the last two years were much less profitable as its earnings per share fell by 60.8% annually while its revenue grew

RXO’s stock price of $15.48 implies a valuation ratio of 30x forward EV-to-EBITDA. If you’re considering RXO for your portfolio, see our FREE research report to learn more.

One Growth Stock to Watch:

UMB Financial (UMBF)

One-Year Revenue Growth: +49.2%

With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ:UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.

Why Does UMBF Stand Out?

1. Market share has increased this cycle as its 17.8% annual net interest income growth over the last five years was exceptional
2. Net interest margin expanded by 49 basis points (100 basis points = 1 percentage point) over the last two years, providing additional flexibility for investments
3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 20.4% over the last five years outstripped its revenue performance

UMB Financial is trading at $126.35 per share, or 1.2x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. 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 244% over the last five years (as of June 30, 2025).

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.