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. On that note, here are two stocks with lasting competitive advantages and one best left ignored.

One Stock to Sell:

BrightSpring Health Services (BTSG)

One-Month Return: +18.6%

Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.

Why Are We Hesitant About BTSG?

1. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 2.4 percentage points
2. Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
3. 5.3 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

At $27.50 per share, BrightSpring Health Services trades at 27.8x forward P/E. If you’re considering BTSG for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Grand Canyon Education (LOPE)

One-Month Return: +3.5%

Founded in 1949, Grand Canyon Education (NASDAQ: LOPE) is an educational services provider known for its operation at Grand Canyon University.

Why Are We Fans of LOPE?

1. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 26.8%
2. Industry-leading 31.8% return on capital demonstrates management’s skill in finding high-return investments, and its rising returns show it’s making even more lucrative bets
3. Returns on capital are climbing as management makes more lucrative bets

Grand Canyon Education’s stock price of $210.09 implies a valuation ratio of 22.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Coastal Financial (CCB)

One-Month Return: +11%

Pioneering the intersection of traditional banking and financial technology in the Pacific Northwest, Coastal Financial (NASDAQ: CCB) operates as a bank holding company that provides traditional banking services and Banking-as-a-Service (BaaS) solutions to consumers and businesses.

Why Should You Buy CCB?

1. Market share has increased this cycle as its 43.2% annual net interest income growth over the last five years was exceptional
2. Productivity and efficiency ratio profits are expected to increase next year as some fixed cost leverage kicks in
3. Earnings growth has trumped its peers over the last five years as its EPS has compounded at 24% annually

Coastal Financial is trading at $115.03 per share, or 3.5x forward P/B. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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