Growth is oxygen. But when it evaporates, the consequences can be extreme - ask anyone who bought Cisco in the Dot-Com Bubble (Nvidia?) 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. On that note, here is one growth stock expanding its competitive advantage and two climbing an uphill battle.

Two Growth Stocks to Sell:

Couchbase (BASE)

One-Year Revenue Growth: +16.3%

Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database-as-a-service platform that allows enterprises to store large volumes of semi-structured data.

Why Do We Think Twice About BASE?

1. Annual revenue growth of 19.2% over the last three years was below our standards for the software sector

2. Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low

3. Historical operating losses point to an inefficient cost structure

Couchbase’s stock price of $17.59 implies a valuation ratio of 4x forward price-to-sales. If you’re considering BASE for your portfolio, see our FREE research report to learn more .

Casella Waste Systems (CWST)

One-Year Revenue Growth: +21.6%

Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ:CWST) offers waste management services for businesses, residents, and the government.

Why Are We Cautious About CWST?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy

2. Efficiency has decreased over the last five years as its operating margin fell by 4 percentage points

3. Issuance of new shares partly offset its revenue growth over the last two years as its earnings per share were flat

Casella Waste Systems is trading at $116.75 per share, or 96.7x forward P/E. Dive into our free research report to see why there are better opportunities than CWST .

One Growth Stock to Buy:

Insulet (PODD)

One-Year Revenue Growth: +22.1%

Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ:PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.

Why Are We Backing PODD?

1. Average constant currency growth of 25.7% over the past two years demonstrates its ability to grow internationally despite currency fluctuations

2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 78% annually, topping its revenue gains

3. Free cash flow margin grew by 19.7 percentage points over the last five years, giving the company more chips to play with