The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here is one stock with lasting competitive advantages and two that may correct.
Two Stocks to Sell:
Enpro (NPO)
One-Month Return: +7.1%
Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE: NPO) designs, manufactures, and sells products used for machinery in various industries.
Why Do We Think Twice About NPO?
- 1.3% annual revenue growth over the last five years was slower than its industrials peers
- Low returns on capital reflect management’s struggle to allocate funds effectively
Enpro is trading at $271.73 per share, or 29.8x forward P/E. Read our free research report to see why you should think twice about including NPO in your portfolio.
Diebold Nixdorf (DBD)
One-Month Return: +18.6%
With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE: DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.
Why Do We Think DBD Will Underperform?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Cash-burning history makes us doubt the long-term viability of its business model
- Eroding returns on capital suggest its historical profit centers are aging
Diebold Nixdorf’s stock price of $86.31 implies a valuation ratio of 15.4x forward P/E. Dive into our free research report to see why there are better opportunities than DBD.
One Stock to Watch:
MACOM (MTSI)
One-Month Return: +18.6%
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
Why Do We Like MTSI?
- Annual revenue growth of 27.8% over the past two years was outstanding, reflecting market share gains this cycle
- Superior product capabilities and pricing power are reflected in its stellar gross margin of 54.5%
- Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 22.2% annually
At $262.40 per share, MACOM trades at 55x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
