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. All that said, here is one stock with lasting competitive advantages and two not so much.
Two Stocks to Sell:
National Vision (EYE)
One-Month Return: +2.2%
Operating under multiple brands, National Vision (NYSE:EYE) sells optical products such as eyeglasses and provides optical services such as eye exams.
Why Should You Sell EYE?
- Products aren't resonating with the market as its revenue declined by 1.6% annually over the last three years
- Store closures demonstrate a defensive approach to eliminating underperforming locations
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
National Vision is trading at $27.78 per share, or 31.3x forward P/E. Dive into our free research report to see why there are better opportunities than EYE.
Ingersoll Rand (IR)
One-Month Return: +16%
Started with the invention of the steam drill, Ingersoll Rand (NYSE:IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.
Why Do We Think Twice About IR?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Estimated sales growth of 4% for the next 12 months implies demand will slow from its two-year trend
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $98.75 per share, Ingersoll Rand trades at 27.8x forward P/E. To fully understand why you should be careful with IR, check out our full research report (it’s free).
One Stock to Buy:
LPL Financial (LPLA)
One-Month Return: -8.8%
As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ:LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
Why Are We Bullish on LPLA?
- Annual revenue growth of 30% over the past two years was outstanding, reflecting market share gains this cycle
- Additional sales over the last five years increased its profitability as the 25.5% annual growth in its earnings per share outpaced its revenue
- Industry-leading 37.9% return on equity demonstrates management’s skill in finding high-return investments
LPL Financial’s stock price of $334.70 implies a valuation ratio of 14x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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.