1 Growth Stock with All-Star Potential and 2 We Question

Barchart·04/03/2026 06:06:18

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.

Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. Keeping that in mind, here is one growth stock expanding its competitive advantage and two whose momentum may slow.

Two Growth Stocks to Sell:

Zillow (ZG)

One-Year Revenue Growth: +15.5%

Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace.

Why Do We Avoid ZG?

1. Annual revenue declines of 5% over the last five years indicate problems with its market positioning
2. Poor free cash flow margin of 10.6% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Returns on capital are growing as management invests in more worthwhile ventures

At $40.63 per share, Zillow trades at 18.2x forward P/E. To fully understand why you should be careful with ZG, check out our full research report (it’s free).

Flutter Entertainment (FLUT)

One-Year Revenue Growth: +16.6%

With its digital fingerprints on nearly every aspect of global gambling, from the Super Bowl bettor to the online poker aficionado, Flutter Entertainment (NASDAQ:FLUT) operates a portfolio of leading online sports betting and gaming brands including FanDuel, PokerStars, Paddy Power, and Sky Betting & Gaming.

Why Should You Sell FLUT?

1. The company has faced growth challenges as its 17.9% annual revenue increases over the last two years fell short of other consumer discretionary companies
2. Subpar operating margin of 3% constrains its ability to invest in process improvements or effectively respond to new competitive threats
3. Low free cash flow margin of 5.4% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Flutter Entertainment is trading at $105.50 per share, or 14.3x forward P/E. If you’re considering FLUT for your portfolio, see our FREE research report to learn more.

One Growth Stock to Buy:

Palantir Technologies (PLTR)

One-Year Revenue Growth: +56.2%

Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ:PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.

Why Is PLTR a Top Pick?

1. Winning new contracts that can potentially increase in value as its billings growth has averaged 59.5% over the last year
2. Software platform has product-market fit given the rapid recovery of its customer acquisition costs
3. PLTR is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Palantir Technologies’s stock price of $148.52 implies a valuation ratio of 51.8x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.

This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.