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 with significant upside potential and two whose momentum may slow.
Two Growth Stocks to Sell:
First American Financial (FAF)
One-Year Revenue Growth: +20.7%
Tracing its roots back to 1889 when California was experiencing its first major real estate boom, First American Financial (NYSE: FAF) provides title insurance, settlement services, and risk solutions for residential and commercial real estate transactions across the United States and internationally.
Why Do We Steer Clear of FAF?
- Net premiums earned remained stagnant over the last five years, indicating expansion challenges this cycle
- Costs have risen faster than its revenue over the last four years, causing its pre-tax profit margin to decline by 9.8 percentage points
- Flat earnings per share over the last five years lagged its peers
First American Financial is trading at $63.54 per share, or 1.2x forward P/B. If you’re considering FAF for your portfolio, see our FREE research report to learn more.
Truist Financial (TFC)
One-Year Revenue Growth: +53.5%
Born from the 2019 merger of BB&T and SunTrust in one of the largest banking combinations since the 2008 financial crisis, Truist Financial (NYSE: TFC) is a bank holding company that offers a wide range of financial services including consumer and commercial banking, wealth management, insurance, and lending solutions.
Why Is TFC Not Exciting?
- Flat net interest income over the last five years suggest it must find different ways to grow during this cycle
- Weak unit economics are reflected in its net interest margin of 3%, one of the worst among bank companies
- Flat earnings per share over the last five years lagged its peers
Truist Financial’s stock price of $43.61 implies a valuation ratio of 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than TFC.
One Growth Stock to Buy:
RenaissanceRe (RNR)
One-Year Revenue Growth: +23.2%
Born in Bermuda after the devastating Hurricane Andrew created a crisis in the catastrophe insurance market, RenaissanceRe (NYSE: RNR) provides property, casualty, and specialty reinsurance and insurance solutions to customers worldwide, primarily through intermediaries.
Why Are We Backing RNR?
- Net premiums earned surged by 22.2% annually over the past two years, reflecting strong market share gains this cycle
- Additional sales over the last two years increased its profitability as the 39.2% annual growth in its earnings per share outpaced its revenue
- Annual book value per share growth of 27.8% over the last two years was superb and indicates its capital strength increased during this cycle
At $243.24 per share, RenaissanceRe trades at 1.1x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 5 Strong Momentum 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 Tecnoglass (+1,754% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
