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.
Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. That said, here is one growth stock with significant upside potential and two climbing an uphill battle.
Two Growth Stocks to Sell:
Semrush (SEMR)
One-Year Revenue Growth: +19.9%
Born from the need to make sense of the complex digital marketing landscape, Semrush (NYSE: SEMR) is a software-as-a-service platform that helps companies improve their online visibility, analyze digital marketing efforts, and optimize content across search engines and social media.
Why Are We Wary of SEMR?
- Struggled to drive increased usage of its software, demonstrated by its subpar 106% net revenue retention rate
- Efficiency fell over the last year as its operating margin declined by 4.3 percentage points because it pursued growth instead of profits
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 9.7% for the last year
At $11.93 per share, Semrush trades at 3.6x forward price-to-sales. If you’re considering SEMR for your portfolio, see our FREE research report to learn more.
Atlantic Union Bankshares (AUB)
One-Year Revenue Growth: +62.8%
Tracing its roots back to 1902 when it first opened its doors in Virginia, Atlantic Union Bankshares (NYSE: AUB) is a full-service regional bank providing commercial and retail banking, wealth management, and insurance services throughout Virginia and parts of Maryland and North Carolina.
Why Does AUB Fall Short?
- Incremental sales over the last two years were less profitable as its 6.2% annual earnings per share growth lagged its revenue gains
- Flat tangible book value per share over the last five years suggest it must find different ways to enhance shareholder value during this cycle
- Low tier one capital ratio of 9.9% indicates the company may struggle to maintain adequate liquidity during periods of economic stress
Atlantic Union Bankshares’s stock price of $34.43 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with AUB, check out our full research report (it’s free).
One Growth Stock to Buy:
McKesson (MCK)
One-Year Revenue Growth: +15.5%
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Is MCK a Good Business?
- Solid 14.9% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- Massive revenue base of $398 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
McKesson is trading at $927.59 per share, or 21.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
