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. Keeping that in mind, here is one stock we think lives up to the hype and two that may correct.
Two Stocks to Sell:
TEGNA (TGNA)
One-Month Return: +10.8%
Spun out of Gannett in 2015, TEGNA (NYSE: TGNA) is a media company operating a network of television stations and digital platforms, focusing on local news and community content.
Why Do We Avoid TGNA?
- Sales trends were unexciting over the last five years as its 1.3% annual growth was below the typical consumer discretionary company
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 7.9% annually
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
TEGNA’s stock price of $20.91 implies a valuation ratio of 9x forward P/E. If you’re considering TGNA for your portfolio, see our FREE research report to learn more.
Autoliv (ALV)
One-Month Return: +1.6%
With products estimated to save over 30,000 lives annually in traffic accidents worldwide, Autoliv (NYSE: ALV) develops and manufactures passive safety systems for vehicles, including airbags, seatbelts, and steering wheels that protect occupants during crashes.
Why Are We Cautious About ALV?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.6% over the last two years was below our standards for the industrials sector
- Estimated sales growth of 2.1% for the next 12 months is soft and implies weaker demand
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 17.9%
Autoliv is trading at $125.14 per share, or 11.8x forward P/E. To fully understand why you should be careful with ALV, check out our full research report (it’s free).
One Stock to Buy:
Howmet (HWM)
One-Month Return: +13.2%
Inventing the first forged aluminum truck wheel, Howmet (NYSE: HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Why Are We Bullish on HWM?
- Impressive 11.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- 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 expanded by 12.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $249.44 per share, Howmet trades at 54.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 5 Strong Momentum Stocks for this week. 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.
