2 Expanding Companies Worth Including in Your Portfolio and 1 We Doubt

The Importance and Challenge of Sustained Growth

Growth acts as the lifeblood for companies, but when it slows or disappears, the impact can be dramatic. Investors who experienced the Dot-Com Bubble with Cisco or the market turbulence from 2020 to 2022 know this firsthand.

Identifying which companies can maintain rapid expansion is a difficult task, even for experts. That’s why StockStory was created—to help make sense of these challenges. Below, we highlight two promising growth stocks and one facing significant headwinds.

Growth Stock to Consider Selling

Assured Guaranty (AGO)

Annual Revenue Growth: 27.3%

Since its inception in 2003, Assured Guaranty (NYSE:AGO) has provided credit enhancement solutions, backing over $11 trillion in debt service payments. The company specializes in guaranteeing payments for municipal bonds, infrastructure financing, and structured financial products.

Reasons to Reconsider Holding AGO:

• Insurance policy sales have declined, with net premiums earned dropping by 4.8% per year over the past five years.
• Revenue is projected to fall by 31.7% in the next twelve months, signaling further weakening demand.
• Earnings per share have decreased at an annual rate of 8.7% over the last two years—a troubling trend, as share prices often follow EPS in the long run.

Currently, AGO trades at $87.51 per share, representing 0.7 times its forward price-to-book ratio.

Two Growth Stocks Worth Buying

The Trade Desk (TTD)

Annual Revenue Growth: 18.5%

The Trade Desk (NASDAQ:TTD) offers a cloud-based platform that empowers advertisers and agencies to plan, execute, and optimize digital ad campaigns across a variety of channels and devices—serving as an alternative to closed advertising ecosystems.

Why TTD Stands Out:

• Revenue has grown by 22% annually over the past two years, reflecting increased market share.
• The platform’s intuitive design allows clients to quickly scale their ad spending, accelerating the recovery of customer acquisition costs.
• With an operating margin of 20.3%, The Trade Desk demonstrates strong operational efficiency, further improved by leveraging fixed costs over the past year.

Shares of The Trade Desk are priced at $27.45, or 3.7 times forward price-to-sales.

Piper Sandler (PIPR)

Annual Revenue Growth: 21.9%

With origins dating back to 1895 and a rebranding from Piper Jaffray in 2020, Piper Sandler (NYSE:PIPR) is a leading investment bank, offering advisory, capital raising, institutional brokerage, and research services to corporations, government entities, and institutional clients.

Why We’re Bullish on PIPR:

• Revenue has expanded by 18.9% per year over the last two years, indicating strong market share gains.
• Profitability is impressive—earnings per share have surged by 38.3% annually, outpacing revenue growth and highlighting the profitability of new business.
• The company’s financial position has strengthened, with tangible book value per share rising by 13.4% per year over the past two years.

Piper Sandler’s stock trades at $302.69, equating to a forward P/E ratio of 15.4.

Discover Even More Top Growth Stocks

Don’t Miss: Our Top 5 Growth Stock Picks — The most successful stocks often share one trait: explosive revenue growth. Companies like Meta, CrowdStrike, and Broadcom were all identified by our AI before their massive gains of 315%, 314%, and 455%, respectively.

See which five stocks are on our radar this month—absolutely free.

Previous picks from 2020 include well-known names like Nvidia (up 1,326% from June 2020 to June 2025) and lesser-known companies such as Tecnoglass, which delivered a remarkable 1,754% five-year return.