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.

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 two growth stocks expanding their competitive advantages and one that could be down big.

One Growth Stock to Sell:

Northwest Bancshares (NWBI)

One-Year Revenue Growth: +19.1%

Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ: NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.

Why Is NWBI Not Exciting?

1. Muted 5.9% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
2. 2.3% annual tangible book value per share growth over the last five years was slower than its banking peers
3. Forecasted tangible book value per share decline of 4.2% for the upcoming 12 months implies profitability will deteriorate significantly

Northwest Bancshares’s stock price of $12.71 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than NWBI.

Two Growth Stocks to Watch:

Armstrong World (AWI)

One-Year Revenue Growth: +15.6%

Started as a two-man shop dating back to the 1860s, Armstrong (NYSE: AWI) provides ceiling and wall products to commercial and residential spaces.

Why Are We Backing AWI?

1. Annual revenue growth of 11.1% over the last two years was superb and indicates its market share increased during this cycle
2. Healthy operating margin of 24.7% shows it’s a well-run company with efficient processes, and its profits increased over the last five years as it scaled
3. Share buybacks catapulted its annual earnings per share growth to 19.5%, which outperformed its revenue gains over the last two years

Armstrong World is trading at $198.43 per share, or 26.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

PennyMac Financial Services (PFSI)

One-Year Revenue Growth: +19.2%

Founded during the 2008 financial crisis to help address the mortgage market meltdown, PennyMac Financial Services (NYSE: PFSI) is a specialty financial services company that originates, services, and manages investments related to residential mortgage loans in the United States.

Why Do We Like PFSI?

1. Impressive 39.9% annual net interest income growth over the last five years indicates it’s winning market share this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 66.2% outpaced its revenue gains
3. Annual tangible book value per share growth of 18.8% over the last five years was superb and indicates its capital strength increased during this cycle

At $117.49 per share, PennyMac Financial Services trades at 1.4x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

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-micro-cap company Tecnoglass (+1,754% 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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