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. That said, here is one growth stock expanding its competitive advantage and two whose momentum may slow.
Two Growth Stocks to Sell:
Olo (OLO)
One-Year Revenue Growth: +21.9%
Processing over two million orders daily across 80,000 restaurant locations nationwide, Olo (NYSE:OLO) provides an enterprise-grade SaaS platform that powers digital ordering, delivery, and payment systems for restaurant brands across the United States.
Why Are We Cautious About OLO?
- Gross margin of 53.3% is way below its competitors, leaving less money to invest in areas like marketing and R&D
- Suboptimal cost structure is highlighted by its history of operating margin losses
At $10.23 per share, Olo trades at 5.1x forward price-to-sales. Read our free research report to see why you should think twice about including OLO in your portfolio.
International Paper (IP)
One-Year Revenue Growth: +18.1%
Established in 1898, International Paper (NYSE:IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
Why Do We Think IP Will Underperform?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Free cash flow margin shrank by 11.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
International Paper’s stock price of $48.37 implies a valuation ratio of 16.1x forward P/E. Dive into our free research report to see why there are better opportunities than IP.
One Growth Stock to Buy:
Nubank (NU)
One-Year Revenue Growth: +22.9%
With nearly 94 million customers across Brazil, Mexico, and Colombia through its viral member-get-member referral program, Nubank (NYSE:NU) is a digital banking platform that offers financial services including spending, saving, investing, borrowing, and protection products to millions of customers across Latin America.
Why Will NU Outperform?
- Impressive 44.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 99.9% over the last two years outstripped its revenue performance
Nubank is trading at $14.57 per share, or 20.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our 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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