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.
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 are two stocks we think live up to the hype and one that may correct.
One Stock to Sell:
Benchmark (BHE)
One-Month Return: +18.8%
Operating as a critical behind-the-scenes partner for complex technology products since 1979, Benchmark Electronics (NYSE:BHE) provides advanced manufacturing, engineering, and technology solutions for original equipment manufacturers across aerospace, medical, industrial, and technology sectors.
Why Is BHE Not Exciting?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.2% annually over the last two years
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 0.7% for the last five years
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $56.60 per share, Benchmark trades at 23.2x forward P/E. Read our free research report to see why you should think twice about including BHE in your portfolio.
Two Stocks to Watch:
Dycom (DY)
One-Month Return: +17.3%
Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE:DY) builds and maintains telecommunications infrastructure.
Why Are We Backing DY?
- Impressive 11.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Operating margin improvement of 5.9 percentage points over the last five years demonstrates its ability to scale efficiently
- Share buybacks catapulted its annual earnings per share growth to 33.3%, which outperformed its revenue gains over the last five years
Dycom’s stock price of $418.60 implies a valuation ratio of 31.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
FirstCash (FCFS)
One-Month Return: +9.8%
Offering a financial lifeline to the unbanked and credit-constrained since 1988, FirstCash (NASDAQ:FCFS) operates pawn stores across the U.S. and Latin America while also providing retail point-of-sale payment solutions for credit-constrained consumers.
Why Do We Watch FCFS?
- Market share has increased this cycle as its 17.5% annual revenue growth over the last five years was exceptional
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 23.8% outpaced its revenue gains
- Adequate return on equity shows management makes decent investment decisions
FirstCash is trading at $182.03 per share, or 17.4x forward P/E. Is now a good time to buy? Find out in our full 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 5 Growth Stocks for this month. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.