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.

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 we think lives up to the hype and two that may correct.

Two Stocks to Sell:

Ducommun (DCO)

One-Month Return: +11.9%

California’s oldest company, Ducommun (NYSE: DCO) is a provider of engineering and manufacturing services for high-performance products primarily within the aerospace and defense industries.

Why Does DCO Give Us Pause?

1. New orders were hard to come by as its average backlog growth of 4.8% over the past two years underwhelmed
2. Efficiency has decreased over the last five years as its operating margin fell by 12.2 percentage points
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam

At $97.64 per share, Ducommun trades at 23.6x forward P/E. Check out our free in-depth research report to learn more about why DCO doesn’t pass our bar.

First Horizon (FHN)

One-Month Return: +13.3%

Tracing its roots back to 1864 during the Civil War era, First Horizon (NYSE: FHN) is a Tennessee-based bank holding company that provides commercial and consumer banking, wealth management, and specialty financial services across multiple states.

Why Are We Hesitant About FHN?

1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
2. Estimated net interest income growth of 2.2% for the next 12 months implies demand will slow from its five-year trend
3. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.7% annually

First Horizon is trading at $24.54 per share, or 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than FHN.

One Stock to Watch:

Old National Bank (ONB)

One-Month Return: +8.4%

Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ: ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.

Why Are We Positive On ONB?

1. Annual net interest income growth of 26.2% over the last five years was superb and indicates its market share increased during this cycle
2. Expected net interest income growth of 27.3% for the next year suggests its market share will rise
3. Productivity and efficiency ratio profits are expected to increase next year as some fixed cost leverage kicks in

Old National Bank’s stock price of $23.04 implies a valuation ratio of 1.1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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.