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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here is one stock with the fundamentals to back up its performance and two not so much.
Two Stocks to Sell:
The Toro Company (TTC)
One-Month Return: +5.1%
Ceasing all production to support the war effort during World War II, Toro (NYSE: TTC) offers outdoor equipment for residential, commercial, and agricultural use.
Why Are We Wary of TTC?
- Sales trends were unexciting over the last two years as its 2.7% annual growth was below the typical industrials company
- Earnings per share lagged its peers over the last five years as they only grew by 4.5% annually
- Waning returns on capital imply its previous profit engines are losing steam
At $98.10 per share, The Toro Company trades at 20.4x forward P/E. Read our free research report to see why you should think twice about including TTC in your portfolio.
Centene (CNC)
One-Month Return: -1.8%
Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE: CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.
Why Is CNC Not Exciting?
- Underwhelming customer growth over the past two years shows the company faced challenges in winning new contracts
- Negative returns on capital show that some of its growth strategies have backfired, and its falling returns suggest its earlier profit pools are drying up
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Centene is trading at $67.03 per share, or 14x forward P/E. Dive into our free research report to see why there are better opportunities than CNC.
One Stock to Buy:
Howmet (HWM)
One-Month Return: +4.3%
Inventing the first forged aluminum truck wheel, Howmet (NYSE: HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Why Will HWM Outperform?
- Market share has increased this cycle as its 13.8% annual revenue growth over the last five years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 42.8% exceeded its revenue gains over the last two years
- Free cash flow margin increased by 12.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Howmet’s stock price of $282.95 implies a valuation ratio of 48.2x forward P/E. Is now a good time to buy? 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 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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
