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.
The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. On that note, here is one growth stock expanding its competitive advantage and two whose momentum may slow.
Two Growth Stocks to Sell:
Perdoceo Education (PRDO)
One-Year Revenue Growth: +16%
Formerly known as Career Education Corporation, Perdoceo Education (NASDAQ:PRDO) is an educational services company that specializes in postsecondary education.
Why Is PRDO Not Exciting?
- Sales trends were unexciting over the last two years as its 2.9% annual growth was below the typical consumer discretionary company
- Eroding returns on capital suggest its historical profit centers are aging
Perdoceo Education is trading at $31.87 per share, or 20.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including PRDO in your portfolio.
Orion (ORN)
One-Year Revenue Growth: +15.9%
Established in 1994, Orion (NYSE:ORN) provides construction services for marine infrastructure and industrial projects.
Why Should You Dump ORN?
- Demand cratered as it couldn’t win new orders over the past two years, leading to an average 1.7% decline in its backlog
- Gross margin of 9.3% reflects its high production costs
- Negative free cash flow raises questions about the return timeline for its investments
Orion’s stock price of $6.72 implies a valuation ratio of 28.4x forward P/E. To fully understand why you should be careful with ORN, check out our full research report (it’s free).
One Growth Stock to Buy:
United Therapeutics (UTHR)
One-Year Revenue Growth: +17.6%
Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ:UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.
Why Are We Backing UTHR?
- Market share has increased this cycle as its 20.7% annual revenue growth over the last two years was exceptional
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
- Returns on capital are climbing as management makes more lucrative bets
At $314.10 per share, United Therapeutics trades at 9.9x 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
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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