1 Growth Stock Set to Flourishand 2 That Underwhelm

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. On that note, here is one growth stock with significant upside potential and two that could be down big.

Two Growth Stocks to Sell:

Pegasystems (PEGA)

One-Year Revenue Growth: +17%

With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems (NASDAQ:PEGA) develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.

Why Are We Hesitant About PEGA?

1. 11.7% annual revenue growth over the last five years was slower than its software peers
2. Estimated sales growth of 4.2% for the next 12 months implies demand will slow from its two-year trend
3. Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment

Pegasystems’s stock price of $50.84 implies a valuation ratio of 5.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PEGA.

Privia Health (PRVA)

One-Year Revenue Growth: +19%

Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ:PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.

Why Does PRVA Fall Short?

1. Subscale operations are evident in its revenue base of $2.04 billion, meaning it has fewer distribution channels than its larger rivals
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 4.3% for the last five years
3. Push for growth has led to negative returns on capital, signaling value destruction

At $24.20 per share, Privia Health trades at 25.5x forward P/E. If you’re considering PRVA for your portfolio, see our FREE research report to learn more.

One Growth Stock to Buy:

Brown & Brown (BRO)

One-Year Revenue Growth: +22.9%

With roots dating back to 1939 and operations spanning 44 U.S. states and 14 countries, Brown & Brown (NYSE:BRO) is an insurance brokerage and risk management firm that markets and sells insurance products across property, casualty, and employee benefits sectors.

Why Should You Buy BRO?

1. Exciting sales outlook for the upcoming 12 months calls for 24.1% growth, an acceleration from its two-year trend
2. Earnings per share grew by 23.7% annually over the last two years, massively outpacing its peers
3. Strong free cash flow margin of 23.8% enables it to reinvest or return capital consistently

Brown & Brown is trading at $74.36 per share, or 17.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 6 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.