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. Keeping that in mind, here is one growth stock where the best is yet to come and two whose momentum may slow.
Two Growth Stocks to Sell:
Agilysys (AGYS)
One-Year Revenue Growth: +17.9%
With a tech stack that powers everything from check-in to checkout at some of the world's top hospitality venues, Agilysys (NASDAQ: AGYS) develops and provides cloud-based and on-premise software solutions for hotels, resorts, casinos, and restaurants to manage operations and enhance guest experiences.
Why Does AGYS Worry Us?
- 19% annual revenue growth over the last three years was slower than its software peers
- Gross margin of 62.1% is below its competitors, leaving less money to invest in areas like marketing and R&D
Agilysys is trading at $107.56 per share, or 9.5x forward price-to-sales. To fully understand why you should be careful with AGYS, check out our full research report (it’s free).
UFP Technologies (UFPT)
One-Year Revenue Growth: +41%
With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ: UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.
Why Do We Think Twice About UFPT?
- Modest revenue base of $588.6 million gives it less fixed cost leverage and fewer distribution channels than larger companies
At $207.58 per share, UFP Technologies trades at 20.8x forward P/E. If you’re considering UFPT for your portfolio, see our FREE research report to learn more.
One Growth Stock to Watch:
Intuit (INTU)
One-Year Revenue Growth: +15.6%
Originally named after its founding product "Intuitive for the first-time user," Intuit (NASDAQ: INTU) provides financial management software and services including TurboTax, QuickBooks, Credit Karma, and Mailchimp to help consumers and small businesses manage their finances.
Why Could INTU Be a Winner?
- Average billings growth of 17.5% over the last year enhances its liquidity and shows there is steady demand for its products
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Robust free cash flow margin of 32.3% gives it many options for capital deployment
Intuit’s stock price of $658.52 implies a valuation ratio of 8.8x forward price-to-sales. 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
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 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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