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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here are three stocks we think live up to the hype.
ESCO (ESE)
One-Month Return: +12.7%
A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO (NYSE: ESE) is a provider of engineered components for the aerospace, defense, and utility sectors.
Why Will ESE Beat the Market?
- Impressive 12.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 38.4% annually, topping its revenue gains
- Free cash flow margin grew by 10.9 percentage points over the last five years, giving the company more chips to play with
ESCO’s stock price of $332.97 implies a valuation ratio of 40.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Primerica (PRI)
One-Month Return: +16.4%
With a sales force of over 140,000 licensed representatives operating on an independent contractor model, Primerica (NYSE: PRI) provides term life insurance, investment products, and other financial services to middle-income households in the United States and Canada.
Why Should PRI Be on Your Watchlist?
- Annual revenue growth of 9% over the last two years beat the sector average and underscores the unique value of its offerings
- Pre-tax profit margin expanded by 6.5 percentage points over the last five years as it scaled and became more efficient
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $296.89 per share, Primerica trades at 3.4x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
East West Bank (EWBC)
One-Month Return: +6.8%
As the largest independent bank in the U.S. focused on bridging financial services between America and Asia, East West Bancorp (NASDAQ: EWBC) operates a commercial bank that provides personal and business banking services with a unique focus on facilitating U.S.-Asia cross-border transactions.
Why Does EWBC Stand Out?
- 13.9% annual net interest income growth over the last five years surpassed the sector average as its loans resonated with borrowers
- Share buybacks catapulted its annual earnings per share growth to 17.9%, which outperformed its revenue gains over the last five years
- Annual tangible book value per share growth of 12.9% over the past five years was outstanding, reflecting strong capital accumulation this cycle
East West Bank is trading at $129.35 per share, or 1.8x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
