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. Keeping that in mind, here is one stock we think lives up to the hype and two that may correct.
Two Stocks to Sell:
Covenant Logistics (CVLG)
One-Month Return: +19.4%
Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ: CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.
Why Are We Out on CVLG?
- Annual revenue growth of 3.8% over the last two years was below our standards for the industrials sector
- Earnings per share fell by 15.7% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $42.60 per share, Covenant Logistics trades at 0.9x forward price-to-sales. Check out our free in-depth research report to learn more about why CVLG doesn’t pass our bar.
Assurant (AIZ)
One-Month Return: +1.3%
With roots dating back to 1892 when it was founded by a Civil War veteran, Assurant (NYSE: AIZ) provides specialized insurance products and services that protect major consumer purchases like mobile devices, vehicles, homes, and appliances.
Why Does AIZ Fall Short?
- Scale presents growth limitations compared to smaller competitors, evidenced by its below-average 5.2% annualized growth in net premiums earned for the last five years
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 13% annually
- Scale is a double-edged sword because it limits the firm’s capital growth potential compared to its smaller competitors, as reflected in its below-average annual book value per share increases of 4.2% for the last five years
Assurant is trading at $259.84 per share, or 2.1x forward P/B. Dive into our free research report to see why there are better opportunities than AIZ.
One Stock to Watch:
Plexus (PLXS)
One-Month Return: +20.1%
With over 20,000 team members across 26 global facilities, Plexus (NASDAQ: PLXS) designs, manufactures, and services complex electronic products for companies in aerospace/defense, healthcare, and industrial sectors.
Why Is PLXS on Our Radar?
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 17.7%
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 28.9% exceeded its revenue gains over the last two years
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Plexus’s stock price of $300.38 implies a valuation ratio of 32.8x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
