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 with lasting competitive advantages and two not so much.
Two Stocks to Sell:
Starbucks (SBUX)
One-Month Return: +1.4%
Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ:SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.
Why Are We Wary of SBUX?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Sales are projected to tank by 1.6% over the next 12 months as demand evaporates
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 3 percentage points
Starbucks’s stock price of $105.05 implies a valuation ratio of 35.9x forward P/E. Check out our free in-depth research report to learn more about why SBUX doesn’t pass our bar.
Gates Industrial Corporation (GTES)
One-Month Return: +9.4%
Helping create one of the most memorable moments for the iconic “Jurassic Park” film, Gates (NYSE:GTES) offers power transmission and fluid transfer equipment for various industries.
Why Does GTES Give Us Pause?
- 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
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.2% annually
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $28.59 per share, Gates Industrial Corporation trades at 16.1x forward P/E. To fully understand why you should be careful with GTES, check out our full research report (it’s free).
One Stock to Watch:
Amalgamated Financial (AMAL)
One-Month Return: +9.5%
Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.
Why Do We Like AMAL?
- 12.9% annual net interest income growth over the last five years surpassed the sector average as its loans resonated with borrowers
- Share repurchases over the last five years enabled its annual earnings per share growth of 17.3% to outpace its revenue gains
- Impressive 10% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
Amalgamated Financial is trading at $50.15 per share, or 1.7x forward P/B. 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
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.