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 we think live up to the hype and one that may correct.
One Stock to Sell:
Aflac (AFL)
One-Month Return: +7.6%
Known for its iconic duck mascot that has quacked "Aflac!" in commercials since 2000, Aflac (NYSE:AFL) provides supplemental health and life insurance policies that pay cash benefits directly to policyholders for expenses not covered by their primary insurance.
Why Is AFL Risky?
- Net premiums earned contracted by 6.2% annually over the last five years, showing unfavorable market dynamics this cycle
- Estimated sales decline of 1.9% for the next 12 months implies an even more challenging demand environment
- Book value per share is projected to decrease by 2.7% over the next 12 months as capital generation weakens
At $114.72 per share, Aflac trades at 2x forward P/B. To fully understand why you should be careful with AFL, check out our full research report (it’s free).
Two Stocks to Watch:
Woodward (WWD)
One-Month Return: +0.8%
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ:WWD) designs, services, and manufactures energy control products and optimization solutions.
Why Are We Bullish on WWD?
- Impressive 10.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Operating margin improvement of 4.3 percentage points over the last five years demonstrates its ability to scale efficiently
- Earnings per share grew by 29.4% annually over the last two years and trumped its peers
Woodward is trading at $364.53 per share, or 42.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
StoneX (SNEX)
One-Month Return: +48.5%
Originally known as INTL FCStone until its 2020 rebranding, StoneX Group (NASDAQ:SNEX) provides a global financial services network connecting companies, traders, and investors to markets through clearing, execution, and advisory services.
Why Could SNEX Be a Winner?
- Impressive 46.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Annual tangible book value per share growth of 16.5% over the last five years was superb and indicates its capital strength increased during this cycle
- ROE punches in at 18%, illustrating management’s expertise in identifying profitable investments
StoneX’s stock price of $105.30 implies a valuation ratio of 2.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 meeting 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.