Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. That said, here is one growth stock where the best is yet to come and two facing an uphill battle.
Two Growth Stocks to Sell:
FTAI Infrastructure (FIP)
One-Year Revenue Growth: +72.3%
Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ:FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.
Why Does FIP Worry Us?
- Poor expense management has led to operating margin losses
- Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential
- Cash-burning history makes us doubt the long-term viability of its business model
FTAI Infrastructure’s stock price of $3.57 implies a valuation ratio of 9.1x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why FIP doesn’t pass our bar.
Antero Resources (AR)
One-Year Revenue Growth: +24.1%
Holding roughly 521,000 net acres across West Virginia, Ohio, and Pennsylvania, Antero Resources (NYSE:AR) drills and produces natural gas, natural gas liquids, and oil from underground rock formations in the Appalachian Basin.
Why Are We Cautious About AR?
- 5.8% annual revenue growth over the last five years was slower than its energy upstream and integrated energy peers
- Efficiency has decreased over the last five years as its EBITDA margin fell by 10 percentage points
Antero Resources is trading at $38.56 per share, or 9.2x forward P/E. To fully understand why you should be careful with AR, check out our full research report (it’s free).
One Growth Stock to Watch:
Morgan Stanley (MS)
One-Year Revenue Growth: +18%
Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley (NYSE:MS) is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.
Why Should MS Be on Your Watchlist?
- Annual revenue growth of 17.7% over the past two years was outstanding, reflecting market share gains this cycle
- Share buybacks catapulted its annual earnings per share growth to 39.7%, which outperformed its revenue gains over the last two years
- Annual tangible book value per share growth of 12.1% over the last two years beat the financials sector average and underscores the improved strength of its balance sheet
At $214.50 per share, Morgan Stanley trades at 16.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.