Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. On that note, here are three growth stocks whose best days may be over and some alternatives you should consider instead.
CoStar (CSGP)
One-Year Revenue Growth: +22%
With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ:CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K.
Why Are We Cautious About CSGP?
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 16.3 percentage points
- 10.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
CoStar is trading at $32.62 per share, or 21.4x forward P/E. Check out our free in-depth research report to learn more about why CSGP doesn’t pass our bar.
TPG (TPG)
One-Year Revenue Growth: +22.8%
Founded in 1992 and managing over 300 active portfolio companies across more than 30 countries, TPG (NASDAQ:TPG) is a global alternative asset management firm that invests across private equity, credit, real estate, and public market strategies.
Why Does TPG Worry Us?
- Earnings growth underperformed the sector average over the last four years as its EPS grew by just 7% annually
TPG’s stock price of $53.54 implies a valuation ratio of 17.2x forward P/E. Read our free research report to see why you should think twice about including TPG in your portfolio.
WesBanco (WSBC)
One-Year Revenue Growth: +37.7%
Tracing its roots back to 1870 in West Virginia, WesBanco (NASDAQ:WSBC) is a bank holding company that provides retail and commercial banking, trust services, insurance, and investment products through its subsidiaries across several Midwestern and Mid-Atlantic states.
Why Is WSBC Not Exciting?
- Weak unit economics are reflected in its net interest margin of 3.5%, one of the worst among bank companies
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
- Tangible book value per share stagnated over the last five years, limiting its ability to leverage its balance sheet to make additional investments
At $42.69 per share, WesBanco trades at 1x forward P/B. Dive into our free research report to see why there are better opportunities than WSBC.
Stocks We Like 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.