Home

3 Growth Stocks with Questionable Fundamentals

TGLS Cover Image

Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.

The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here are three growth stocks whose momentum may slow and some other opportunities you should look into instead.

Tecnoglass (TGLS)

One-Year Revenue Growth: +15.7%

The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE:TGLS) is a manufacturer of architectural glass, windows, and aluminum products.

Why Do We Think Twice About TGLS?

  1. Muted 7.3% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
  2. Earnings per share have contracted by 3.2% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
  3. Free cash flow margin dropped by 10.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Tecnoglass is trading at $53.24 per share, or 13.7x forward P/E. Dive into our free research report to see why there are better opportunities than TGLS.

Pinnacle Financial Partners (PNFP)

One-Year Revenue Growth: +15.1%

Founded in 2000 with a focus on delivering big-bank capabilities with community bank personalization, Pinnacle Financial Partners (NASDAQ:PNFP) is a Tennessee-based financial holding company that provides banking, investment, trust, mortgage, and insurance services to businesses and individuals.

Why Does PNFP Give Us Pause?

  1. Inferior net interest margin of 3.2% means it must compensate for lower profitability through increased loan originations
  2. Operational productivity has decreased over the last four years as its efficiency ratio worsened by 7.8 percentage points
  3. Estimated tangible book value per share growth of 2% for the next 12 months implies profitability will slow from its two-year trend

At $99.87 per share, Pinnacle Financial Partners trades at 1.1x forward P/B. If you’re considering PNFP for your portfolio, see our FREE research report to learn more.

Dime Community Bancshares (DCOM)

One-Year Revenue Growth: +28.5%

With roots dating back to 1910 and a name that evokes the historic "dime savings banks" of America's past, Dime Community Bancshares (NASDAQ:DCOM) is a New York-based bank holding company that provides commercial banking and financial services to businesses and consumers throughout Greater Long Island.

Why Are We Cautious About DCOM?

  1. Annual revenue growth of 6.5% over the last two years was below our standards for the banking sector
  2. Net interest margin of 2.7% reflects its high servicing and capital costs
  3. Annual earnings per share growth of 1.6% underperformed its revenue over the last five years, showing its incremental sales were less profitable

Dime Community Bancshares’s stock price of $31.27 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with DCOM, check out our full research report (it’s free for active Edge members).

Stocks We Like More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum 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 Exlservice (+354% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.