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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here are two stocks with the fundamentals to back up their performance and one not so much.
One Stock to Sell:
Haemonetics (HAE)
One-Month Return: +38.3%
With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE:HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.
Why Are We Cautious About HAE?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Modest revenue base of $1.35 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
Haemonetics’s stock price of $108.99 implies a valuation ratio of 20x forward P/E. If you’re considering HAE for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Airbnb (ABNB)
One-Month Return: +32.8%
Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Why Do We Love ABNB?
- Nights and Experiences Booked are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Healthy EBITDA margin of 35.6% shows it’s a well-run company with efficient processes, and its rise over the last few years was fueled by some leverage on its fixed costs
- Strong free cash flow margin of 36.8% enables it to reinvest or return capital consistently
At $187.43 per share, Airbnb trades at 18.9x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.
Mercury General (MCY)
One-Month Return: -1.4%
Founded in 1961 and maintaining a network of over 6,300 independent agents across the country, Mercury General (NYSE:MCY) is an insurance company that primarily sells automobile insurance policies through independent agents in 11 states, with a strong focus on California.
Why Are We Fans of MCY?
- Strong 11.9% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Additional sales over the last two years increased its profitability as the 87% annual growth in its earnings per share outpaced its revenue
- Impressive 31.1% annual book value per share growth over the last two years indicates it’s building equity value this cycle
Mercury General is trading at $105.75 per share, or 1.8x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
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.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.