The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.
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 are two stocks with lasting competitive advantages and one not so much.
One Stock to Sell:
Analog Devices (ADI)
One-Month Return: +7.9%
Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.
Why Do We Think Twice About ADI?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.4% annually over the last two years
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $301.30 per share, Analog Devices trades at 30.3x forward P/E. To fully understand why you should be careful with ADI, check out our full research report (it’s free).
Two Stocks to Watch:
Wabtec (WAB)
One-Month Return: +5.3%
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry.
Why Could WAB Be a Winner?
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share repurchases over the last two years enabled its annual earnings per share growth of 22.6% to outpace its revenue gains
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Wabtec is trading at $225.67 per share, or 22.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Coherent (COHR)
One-Month Return: -0.1%
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE:COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Should COHR Be on Your Watchlist?
- Annual revenue growth of 16.9% over the past five years was outstanding, reflecting market share gains this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 14.9%
- Earnings per share grew by 38.4% annually over the last two years and trumped its peers
Coherent’s stock price of $178.15 implies a valuation ratio of 32x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.