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 with the fundamentals to back up its performance and two that may correct.
Two Stocks to Sell:
Citizens Financial Group (CFG)
One-Month Return: +10.5%
Tracing its roots back to 1828 as a community-focused institution, Citizens Financial Group (NYSE: CFG) is a regional bank that provides retail and commercial banking services to individuals, small businesses, and large corporations across 14 states.
Why Are We Hesitant About CFG?
- Sales trends were unexciting over the last two years as its 2.6% annual growth was below the typical banking company
- Muted 5.8% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Incremental sales over the last five years were less profitable as its 2.5% annual earnings per share growth lagged its revenue gains
Citizens Financial Group is trading at $63.85 per share, or 1.1x forward P/B. Check out our free in-depth research report to learn more about why CFG doesn’t pass our bar.
Select Water Solutions (WTTR)
One-Month Return: +5.3%
Managing over 24 billion barrels of produced water annually across major U.S. shale plays, Select Water Solutions (NYSE: WTTR) provides water sourcing, recycling, disposal, and treatment services for oil and gas producers.
Why Are We Cautious About WTTR?
- Smaller revenue base of $1.41 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Gross margin of 22.8% reflects its high production costs and unfavorable asset base
- Poor free cash flow margin of 1.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $16.43 per share, Select Water Solutions trades at 48.9x forward P/E. If you’re considering WTTR for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Broadcom (AVGO)
One-Month Return: +39.7%
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ: AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Why Will AVGO Beat the Market?
- Impressive 32.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 76.5%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Broadcom’s stock price of $420.03 implies a valuation ratio of 31.2x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
