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 is one stock with the fundamentals to back up its performance and two not so much.
Two Stocks to Sell:
CVS Health (CVS)
One-Month Return: +20.4%
With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE: CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.
Why Does CVS Worry Us?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 6.3% over the last two years was below our standards for the healthcare sector
- Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 1.5% annually while its revenue grew
CVS Health is trading at $93.15 per share, or 12.4x forward P/E. Check out our free in-depth research report to learn more about why CVS doesn’t pass our bar.
Radian Group (RDN)
One-Month Return: +6.3%
Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE: RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership.
Why Does RDN Fall Short?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Insurance offerings faced market headwinds this cycle, reflected in stagnant net premiums earned over the last five years
- Earnings per share lagged its peers over the last two years as they only grew by 6.2% annually
Radian Group’s stock price of $37.60 implies a valuation ratio of 0.9x forward P/B. Read our free research report to see why you should think twice about including RDN in your portfolio.
One Stock to Watch:
Helmerich & Payne (HP)
One-Month Return: +14.7%
Operating the largest fleet of super-spec rigs in North America with technology that can drill horizontal wells over two miles long, Helmerich & Payne (NYSE: HP) provides drilling rigs and crews to oil and gas companies that need wells drilled to extract hydrocarbons from underground.
Why Should HP Be on Your Watchlist?
- Annual revenue growth of 32.2% over the last five years was superb and indicates its market share increased during this cycle
- $4.00 billion in revenue gives its scale, which leads to bargaining power with suppliers and retailers
- EBITDA margin improvement of 11 percentage points over the last five years demonstrates its ability to scale efficiently
At $40.88 per share, Helmerich & Payne trades at 38.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE.
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.
