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 momentum may slow and some other opportunities you should look into instead.
Seagate Technology (STX)
One-Year Revenue Growth: +38.9%
The developer of the original 5.25inch hard disk drive, Seagate (NASDAQ: STX) is a leading producer of data storage solutions, including hard drives and Solid State Drives (SSDs) used in PCs and data centers.
Why Are We Hesitant About STX?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.8% annually over the last five years
- Gross margin of 30.4% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Low free cash flow margin of 9.5% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Seagate Technology is trading at $228.80 per share, or 23.3x forward P/E. Check out our free in-depth research report to learn more about why STX doesn’t pass our bar.
EverQuote (EVER)
One-Year Revenue Growth: +92.9%
Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Why Do We Think Twice About EVER?
- Expensive marketing campaigns hurt its profitability and make us wonder what would happen if it let up on the gas
At $23.51 per share, EverQuote trades at 10.2x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than EVER.
Marcus & Millichap (MMI)
One-Year Revenue Growth: +17.9%
Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Why Do We Think MMI Will Underperform?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Eroding returns on capital suggest its historical profit centers are aging
Marcus & Millichap’s stock price of $29.60 implies a valuation ratio of 227.5x forward P/E. Check out our free in-depth research report to learn more about why MMI doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% 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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