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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. On that note, here is one stock with lasting competitive advantages and two that may correct.
Two Stocks to Sell:
General Dynamics (GD)
One-Month Return: -2.5%
Creator of the famous M1 Abrahms tank, General Dynamics (NYSE:GD) develops aerospace, marine systems, combat systems, and information technology products.
Why Does GD Worry Us?
- New orders were hard to come by as its average backlog growth of 6.9% over the past two years underwhelmed
- Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its two-year trend
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 7% annually
At $346.81 per share, General Dynamics trades at 21.6x forward P/E. Check out our free in-depth research report to learn more about why GD doesn’t pass our bar.
MSCI (MSCI)
One-Month Return: +8.5%
Originally known as Morgan Stanley Capital International before becoming independent in 2007, MSCI (NYSE:MSCI) provides critical decision support tools, indexes, and analytics that help global investors understand risk and return factors and build more effective investment portfolios.
Why Do We Think Twice About MSCI?
- Push for growth has led to negative returns on capital, signaling value destruction
MSCI is trading at $626.50 per share, or 31.3x forward P/E. If you’re considering MSCI for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Charles Schwab (SCHW)
One-Month Return: +1.5%
Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE:SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.
Why Are We Bullish on SCHW?
- Impressive 15.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share buybacks catapulted its annual earnings per share growth to 24.9%, which outperformed its revenue gains over the last two years
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Charles Schwab’s stock price of $105.34 implies a valuation ratio of 17.8x forward P/E. Is now the time to initiate a position? Find out in our full 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 9 Market-Beating Stocks. 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.