The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. On that note, here is one stock we think lives up to the hype and two not so much.

Two Stocks to Sell:

Astec (ASTE)

One-Month Return: +14.6%

Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ: ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.

Why Are We Wary of ASTE?

1. Annual revenue growth of 2.7% over the last two years was below our standards for the industrials sector
2. Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 13.1% declines over the past two years
3. Cash-burning history makes us doubt the long-term viability of its business model

At $62.64 per share, Astec trades at 16.3x forward P/E. If you’re considering ASTE for your portfolio, see our FREE research report to learn more.

Nelnet (NNI)

One-Month Return: +2.8%

Starting as a student loan servicer in the 1970s and evolving through the changing landscape of education finance, Nelnet (NYSE: NNI) provides student loan servicing, education technology, payment processing, and banking services while managing a portfolio of education loans.

Why Are We Cautious About NNI?

1. Incremental sales over the last five years were less profitable as its 4.3% annual earnings per share growth lagged its revenue gains
2. ROE of 9% reflects management’s challenges in identifying attractive investment opportunities

Nelnet is trading at $135.95 per share, or 14.8x forward P/E. Check out our free in-depth research report to learn more about why NNI doesn’t pass our bar.

One Stock to Watch:

WD-40 (WDFC)

One-Month Return: -3.4%

Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ: WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.

Why Do We Watch WDFC?

1. Unique products and pricing power are reflected in its premier gross margin of 54.5%
2. WDFC is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are climbing as it finds even more attractive growth opportunities

WD-40’s stock price of $244.32 implies a valuation ratio of 39.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.