Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here are two stocks we think live up to the hype and one not so much.
One Stock to Sell:
MasTec (MTZ)
One-Month Return: +21.1%
Involved in the 1996 Olympic Games MasTec (NYSE:MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.
Why Are We Hesitant About MTZ?
- Gross margin of 13.1% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Operating margin of 3% decreased from an already low base, demonstrating the tradeoff between growth and profitability
- 3.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
MasTec is trading at $214 per share, or 33.1x forward P/E. To fully understand why you should be careful with MTZ, check out our full research report (it’s free for active Edge members).
Two Stocks to Buy:
Palantir Technologies (PLTR)
One-Month Return: +12.4%
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ:PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Will PLTR Outperform?
- Billings have averaged 44.2% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Strong free cash flow margin of 55% enables it to reinvest or return capital consistently
At $175.43 per share, Palantir Technologies trades at 90.7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
FB Financial (FBK)
One-Month Return: +8.3%
Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE:FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.
Why Do We Love FBK?
- Impressive 14.4% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Market share is on track to rise over the next 12 months as its 32.6% projected net interest income growth implies demand will accelerate from its five-year trend
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 6% annually
FB Financial’s stock price of $58.19 implies a valuation ratio of 1.5x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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