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. Keeping that in mind, here are two growth stocks where the best is yet to come and one facing an uphill battle.
One Growth Stock to Sell:
Independent Bank (INDB)
One-Year Revenue Growth: +41.2%
Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. (NASDAQ: INDB) operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.
Why Does INDB Fall Short?
- Annual tangible book value per share growth of 3.4% over the last two years was below our standards for the banking sector
- Projected tangible book value per share growth of 7.6% for the next 12 months suggests sluggish capital generation
- ROE of 7.5% reflects management’s challenges in identifying attractive investment opportunities
Independent Bank’s stock price of $82.45 implies a valuation ratio of 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than INDB.
Two Growth Stocks to Watch:
Dynatrace (DT)
One-Year Revenue Growth: +17.9%
With its platform processing over 30 trillion pieces of IT performance data daily, Dynatrace (NYSE: DT) provides an AI-powered platform that helps organizations monitor, secure, and optimize their applications and IT infrastructure across cloud environments.
Why Are We Positive on DT?
- ARR growth averaged 18.2% over the last year, showing customers are willing to take multi-year bets on its software
- Software is difficult to replicate at scale and leads to a stellar gross margin of 81.6%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Dynatrace is trading at $55.29 per share, or 6.7x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Granite Construction (GVA)
One-Year Revenue Growth: +21.8%
Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE: GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.
What Makes GVA Stand Out?
- Market share has increased this cycle as its 14.3% annual revenue growth over the last two years was exceptional
- Share repurchases over the last two years enabled its annual earnings per share growth of 27.2% to outpace its revenue gains
- Free cash flow margin grew by 14.6 percentage points over the last five years, giving the company more chips to play with
At $115.15 per share, Granite Construction trades at 15.7x forward P/E. Is now the right time to buy? See for yourself in our comprehensive 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
