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 not so much.
Two Stocks to Sell:
CSX (CSX)
One-Month Return: +2.3%
Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ: CSX) is a transportation company specializing in freight rail services.
Why Should You Sell CSX?
- Underwhelming unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Sales were less profitable over the last two years as its earnings per share fell by 6.5% annually, worse than its revenue declines
- 18.9 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
CSX is trading at $36.15 per share, or 19.5x forward P/E. Dive into our free research report to see why there are better opportunities than CSX.
SS&C (SSNC)
One-Month Return: +2.2%
Founded in 1986 as a bridge between technology and financial services, SS&C Technologies (NASDAQ: SSNC) provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes.
Why Does SSNC Fall Short?
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 1.3 percentage points
- Free cash flow margin dropped by 4.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
SS&C’s stock price of $87.66 implies a valuation ratio of 13.3x forward P/E. To fully understand why you should be careful with SSNC, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Acuity Brands (AYI)
One-Month Return: +3.1%
One of the pioneers of smart lights, Acuity (NYSE: AYI) designs and manufactures light fixtures and building management systems used in various industries.
Why Could AYI Be a Winner?
- Offerings are mission-critical for businesses and result in a top-tier gross margin of 44.5%
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.9% exceeded its revenue gains over the last five years
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $374.78 per share, Acuity Brands trades at 18.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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