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:
Sunrun (RUN)
One-Year Revenue Growth: +63.2%
Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ: RUN) provides residential solar electricity, specializing in panel installation and leasing services.
Why Are We Wary of RUN?
- Historical operating margin losses point to an inefficient cost structure
- Cash-burning history makes us doubt the long-term viability of its business model
At $9.87 per share, Sunrun trades at 10.5x forward P/E. Dive into our free research report to see why there are better opportunities than RUN.
Cognex (CGNX)
One-Year Revenue Growth: +17.1%
Founded in 1981 when computer vision was in its infancy, Cognex (NASDAQ: CGNX) develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products.
Why Does CGNX Fall Short?
- Annual revenue growth of 2.1% over the last five years was below our standards for the business services sector
- Earnings per share have contracted by 2.5% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Cognex’s stock price of $64.35 implies a valuation ratio of 36.1x forward P/E. Check out our free in-depth research report to learn more about why CGNX doesn’t pass our bar.
One Growth Stock to Watch:
HubSpot (HUBS)
One-Year Revenue Growth: +21.1%
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE: HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.
Why Are We Positive on HUBS?
- Annual revenue growth of 20% over the last two years was superb and indicates its market share is rising
- ARR growth averaged 21.3% over the last year, showing customers are willing to take multi-year bets on its software
- Prominent and differentiated software culminates in a premier gross margin of 83.2%
HubSpot is trading at $216.85 per share, or 2.7x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
