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.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. Keeping that in mind, here is one growth stock with significant upside potential and two that could be down big.
Two growth stocks to sell:
Microchip Technology (MCHP)
One-year revenue growth: +20.9%
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Why Are We Out on MCHP?
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Annual sales declines of 11.8% for the past two years show its products and services struggled to connect with the market during this cycle
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Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 9.6% annually, worse than its revenue
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Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 15 percentage points
At $78.36 per share, Microchip Technology trades at 20.3x forward P/E. Check out our free in-depth research report to learn more about why MCHP doesn't pass our bar .
FB Financial (FBK)
One-year revenue growth: +21.4%
Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE:FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.
Why Are We Wary of FBK?
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Muted 3.3% annual revenue growth over the last five years shows its demand lagged behind its banking peers
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Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 2.8% annually
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5.8% annual tangible book value per share growth over the last two years was slower than its banking peers
FB Financial is trading at $52.95 per share, or 1.3x forward P/B. If you're considering FBK for your portfolio, see our FREE research report to learn more .
One growth stock to buy:
Tutor Perini (TPC)
One-year revenue growth: +24.7%
Known for constructing the Philadelphia Eagles' Stadium, Tutor Perini (NYSE:TPC) is a civil and building construction company offering diversified general contracting and design-build services.
Why Are We Bullish on TPC?
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Impressive 18.2% annual revenue growth over the last two years indicates it's winning market share this cycle
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Free cash flow margin jumped by 7.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
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Rising returns on capital show the company is starting to reap the benefits of its past investments
Tutor Perini's stock price of $79.68 implies a valuation ratio of 15.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free .
Stocks we like even more
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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today .
