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.
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 where the best is yet to come and two climbing an uphill battle.
Two Growth Stocks to Sell:
UFP Technologies (UFPT)
One-Year Revenue Growth: +19.5%
With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ: UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.
Why Does UFPT Fall Short?
- Modest revenue base of $602.8 million gives it less fixed cost leverage and fewer distribution channels than larger companies
UFP Technologies’s stock price of $205.80 implies a valuation ratio of 20.7x forward P/E. Dive into our free research report to see why there are better opportunities than UFPT.
Provident Financial Services (PFS)
One-Year Revenue Growth: +24.6%
Founded in 1839 and serving communities across New Jersey, Pennsylvania, and New York, Provident Financial Services (NYSE: PFS) operates a regional bank providing commercial, residential, and consumer lending alongside wealth management and insurance services.
Why Is PFS Not Exciting?
- Net interest income is projected to tank by 7.4% over the next 12 months as demand evaporates
- Weak unit economics are reflected in its net interest margin of 3.3%, one of the worst among bank companies
- Tangible book value per share tumbled by 2.1% annually over the last two years, showing banking sector trends are working against its favor during this cycle
At $20.40 per share, Provident Financial Services trades at 0.9x forward P/B. Read our free research report to see why you should think twice about including PFS in your portfolio.
One Growth Stock to Buy:
Skyward Specialty Insurance (SKWD)
One-Year Revenue Growth: +23.2%
Founded in 2006 to serve markets where standard insurance coverage falls short, Skyward Specialty Insurance (NASDAQ: SKWD) provides customized commercial property, casualty, and health insurance solutions for underserved or specialized market niches.
Why Will SKWD Outperform?
- Market penetration was impressive this cycle as its net premiums earned expanded by 25.4% annually over the last two years
- Additional sales over the last two years increased its profitability as the 38.2% annual growth in its earnings per share outpaced its revenue
- Expected book value per share growth of 21.8% for the next year suggests its capital position will strengthen considerably
Skyward Specialty Insurance is trading at $44.99 per share, or 1.6x forward P/B. 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 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth 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.
