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1 Momentum Stock with Exciting Potential and 2 That Underwhelm

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GBTG Cover Image

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:

American Express Global Business Travel (GBTG)

One-Month Return: +0.4%

Originally spun off from American Express in 2014 but maintaining the Amex GBT brand, Global Business Travel Group (NYSE: GBTG) provides end-to-end business travel and expense management solutions, connecting corporate clients with travel suppliers and offering specialized software services.

Why Are We Hesitant About GBTG?

  1. Estimated sales growth of 7.8% for the next 12 months implies demand will slow from its two-year trend
  2. Gross margin of 58.5% reflects its high servicing costs
  3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 3.8 percentage points

American Express Global Business Travel’s stock price of $9.43 implies a valuation ratio of 1.4x forward price-to-sales. Read our free research report to see why you should think twice about including GBTG in your portfolio.

Hilltop Holdings (HTH)

One-Month Return: +2.4%

Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings (NYSE: HTH) is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.

Why Are We Out on HTH?

  1. Muted 1.4% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
  2. Rigid costs and anticipated drop in sales over the next year are expected to drive a 30.3 percentage point increase in its efficiency ratio
  3. Sales were less profitable over the last five years as its earnings per share fell by 13.8% annually, worse than its revenue declines

At $39.42 per share, Hilltop Holdings trades at 1x forward P/B. Check out our free in-depth research report to learn more about why HTH doesn’t pass our bar.

One Stock to Watch:

Aramark (ARMK)

One-Month Return: +0.3%

From serving hot dogs at major league stadiums to managing college dining halls that feed thousands daily, Aramark (NYSE: ARMK) provides food services and facilities management to schools, healthcare facilities, businesses, sports venues, and correctional institutions across 16 countries.

Why Do We Like ARMK?

  1. Annual revenue growth of 13.3% over the last five years was superb and indicates its market share increased during this cycle
  2. Enormous revenue base of $19.41 billion provides significant distribution advantages
  3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 26.5% over the last five years outstripped its revenue performance

Aramark is trading at $56.32 per share, or 23x forward P/E. Is now a good time to buy? See for yourself 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 is 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

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