The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here is one stock with the fundamentals to back up its performance and two that may correct.
Two Stocks to Sell:
Take-Two (TTWO)
One-Month Return: +2.9%
Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ:TTWO) is one of the world’s largest video game publishers.
Why Are We Cautious About TTWO?
- Estimated sales growth of 4.8% for the next 12 months implies demand will slow from its three-year trend
- Earnings per share fell by 487% annually over the last three years while its revenue grew, partly because it diluted shareholders
- Negative free cash flow raises questions about the return timeline for its investments
At $254.46 per share, Take-Two trades at 50.5x forward EV/EBITDA. Read our free research report to see why you should think twice about including TTWO in your portfolio.
RTX (RTX)
One-Month Return: +11.3%
Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.
Why Are We Hesitant About RTX?
- Estimated sales growth of 5.2% for the next 12 months implies demand will slow from its two-year trend
- Operating margin of 7.5% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- ROIC of 4.1% reflects management’s challenges in identifying attractive investment opportunities
RTX is trading at $190.98 per share, or 29.3x forward P/E. Dive into our free research report to see why there are better opportunities than RTX.
One Stock to Watch:
CRA (CRAI)
One-Month Return: +14.8%
Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ:CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy.
Why Are We Fans of CRAI?
- Market share has increased this cycle as its 9.7% annual revenue growth over the last two years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 27.6% exceeded its revenue gains over the last two years
- ROIC punches in at 18.7%, illustrating management’s expertise in identifying profitable investments
CRA’s stock price of $215.17 implies a valuation ratio of 24.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.