Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.

Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. That said, here are three growth stocks whose momentum may slow and some other opportunities you should look into instead.

Casella Waste Systems (CWST)

One-Year Revenue Growth: +20.5%

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 Does CWST Give Us Pause?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Efficiency has decreased over the last five years as its operating margin fell by 5 percentage points
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up

At $106.58 per share, Casella Waste Systems trades at 85.3x forward P/E. To fully understand why you should be careful with CWST, check out our full research report (it’s free).

U.S. Physical Therapy (USPH)

One-Year Revenue Growth: +17.5%

With a nationwide footprint spanning 671 clinics across 42 states, U.S. Physical Therapy (NYSE: USPH) operates a network of outpatient physical therapy clinics and provides industrial injury prevention services to employers across the United States.

Why Is USPH Not Exciting?

1. Modest revenue base of $758.7 million gives it less fixed cost leverage and fewer distribution channels than larger companies
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8.6 percentage points
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

U.S. Physical Therapy’s stock price of $87.46 implies a valuation ratio of 30.5x forward P/E. Check out our free in-depth research report to learn more about why USPH doesn’t pass our bar.

Provident Financial Services (PFS)

One-Year Revenue Growth: +40.2%

Founded in 1839 and serving communities across New Jersey, Pennsylvania, and New York, Provident Financial Services (NYSE: PFS) operates a regional bank providing commercial, residential, and consumer lending alongside wealth management and insurance services.

Why Do We Think Twice About PFS?

1. Inferior net interest margin of 3.3% means it must compensate for lower profitability through increased loan originations
2. Performance over the past two years shows its incremental sales were less profitable, as its 2.2% annual earnings per share growth trailed its revenue gains
3. Tangible book value per share tumbled by 1.3% annually over the last two years, showing banking sector trends are working against its favor during this cycle

Provident Financial Services is trading at $21.30 per share, or 1x forward P/B. Dive into our free research report to see why there are better opportunities than PFS.

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.