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. All that said, here is one stock we think lives up to the hype and two not so much.
Two Stocks to Sell:
Estée Lauder (EL)
One-Month Return: -12.5%
Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE:EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming.
Why Does EL Give Us Pause?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Poor expense management has led to an operating margin of 0.3% that is below the industry average
- Earnings per share decreased by more than its revenue over the last three years, partly because it diluted shareholders
Estée Lauder’s stock price of $99.50 implies a valuation ratio of 36.4x forward P/E. If you’re considering EL for your portfolio, see our FREE research report to learn more.
Exact Sciences (EXAS)
One-Month Return: +1%
With a mission to detect cancer earlier when it's more treatable, Exact Sciences (NASDAQ:EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test.
Why Are We Cautious About EXAS?
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Negative returns on capital show management lost money while trying to expand the business
Exact Sciences is trading at $103.18 per share, or 121.8x forward P/E. To fully understand why you should be careful with EXAS, check out our full research report (it’s free).
One Stock to Buy:
Popular (BPOP)
One-Month Return: +14.2%
Founded in 1893 as the first bank in Puerto Rico to serve the working class, Popular (NASDAQ:BPOP) is a financial holding company that provides retail, mortgage, and commercial banking services primarily in Puerto Rico and the mainland United States.
Why Do We Love BPOP?
- Net interest margin expanded by 54.8 basis points (100 basis points = 1 percentage point) over the last two years, providing additional flexibility for investments
- Share buybacks propelled its annual earnings per share growth to 22.1%, which outperformed its revenue gains over the last two years
- Balance sheet strength has increased this cycle as its 18.9% annual tangible book value per share growth over the last two years was exceptional
At $146.02 per share, Popular trades at 1.3x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.