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 expanding its competitive advantage and two facing an uphill battle.
Two Growth Stocks to Sell:
Varonis Systems (VRNS)
One-Year Revenue Growth: +15.2%
Beginning with protecting Windows file shares in 2005 and evolving into a comprehensive security platform, Varonis Systems (NASDAQ: VRNS) provides data security software that helps organizations protect sensitive information, detect threats, and comply with privacy regulations.
Why Do We Pass on VRNS?
- Sales trends were unexciting over the last five years as its 16.1% annual growth was below the typical software company
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Efficiency has decreased over the last year as its operating margin fell by 2.5 percentage points
Varonis Systems’s stock price of $44.84 implies a valuation ratio of 6.8x forward price-to-sales. Read our free research report to see why you should think twice about including VRNS in your portfolio.
Northern Trust (NTRS)
One-Year Revenue Growth: +10.4%
Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ: NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.
Why Does NTRS Worry Us?
- 6.9% annual revenue growth over the last five years was slower than its financials peers
Northern Trust is trading at $178.21 per share, or 15.1x forward P/E. Check out our free in-depth research report to learn more about why NTRS doesn’t pass our bar.
One Growth Stock to Buy:
Dell (DELL)
One-Year Revenue Growth: +38.6%
Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE: DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.
Why Is DELL a Good Business?
- Market share has increased this cycle as its 22.2% annual revenue growth over the last two years was exceptional
- Share buybacks catapulted its annual earnings per share growth to 38.8%, which outperformed its revenue gains over the last two years
- Returns on capital are growing as management capitalizes on its market opportunities
At $439.52 per share, Dell trades at 23.8x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.
