Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here is one stock we think lives up to the hype and two best left ignored.
Two Stocks to Sell:
Ziff Davis (ZD)
One-Month Return: +9.7%
Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ: ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets.
Why Are We Out on ZD?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 9.2 percentage points
- Sales over the last five years were less profitable as its earnings per share fell by 7% annually while its revenue was flat
At $46.03 per share, Ziff Davis trades at 8.6x forward P/E. To fully understand why you should be careful with ZD, check out our full research report (it’s free).
MetLife (MET)
One-Month Return: +6.3%
Founded in 1863 by a group of New York businessmen during the Civil War era, MetLife (NYSE: MET) is a global financial services company that provides insurance, annuities, employee benefits, and asset management services to individuals and businesses worldwide.
Why Do We Steer Clear of MET?
- Net premiums earned only expanded by 2.7% annually over the last five years, trailing its insurance peers as its scale limited incremental business
- Earnings per share lagged its peers over the last two years as they only grew by 10.8% annually
- Annual book value per share declines of 10.8% for the past five years show its capital management struggled during this cycle
MetLife’s stock price of $86.22 implies a valuation ratio of 2x forward P/B. Dive into our free research report to see why there are better opportunities than MET.
One Stock to Watch:
Old Second Bancorp (OSBC)
One-Month Return: +5.4%
Dating back to 1871 as one of the Chicago area's longest-standing financial institutions, Old Second Bancorp (NASDAQ: OSBC) is an Illinois-based community bank offering deposit services, commercial and consumer loans, wealth management, and mortgage products through its 53 branch locations.
Why Do We Like OSBC?
- Annual revenue growth of 21.5% over the past five years was outstanding, reflecting market share gains this cycle
- Market share has increased this cycle as its 27.4% annual net interest income growth over the last five years was exceptional
- High-yielding loan book and low cost of funds result in a best-in-class net interest margin of 4.9%
Old Second Bancorp is trading at $21.91 per share, or 1.2x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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.
