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:
Etsy (ETSY)
One-Month Return: +20.1%
Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ: ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Why Are We Cautious About ETSY?
- Likely needs to improve its platform or increase its marketing budget for penetration to accelerate as its active buyers were flat over the last two years
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Performance over the past three years shows its incremental sales were less profitable as its earnings per share were flat
Etsy is trading at $69.90 per share, or 11.6x forward EV/EBITDA. If you’re considering ETSY for your portfolio, see our FREE research report to learn more.
Telephone and Data Systems (TDS)
One-Month Return: +1.6%
Operating primarily through its majority-owned subsidiary UScellular and wholly-owned TDS Telecom, Telephone and Data Systems (NYSE: TDS) provides wireless, broadband, video, and voice communications services to 4.6 million wireless and 1.2 million broadband customers across the United States.
Why Is TDS Risky?
- Annual sales declines of 1.5% for the past five years show its products and services struggled to connect with the market during this cycle
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
Telephone and Data Systems’s stock price of $39 implies a valuation ratio of 3.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TDS.
One Stock to Watch:
Travelers (TRV)
One-Month Return: +3%
Tracing its roots back to 1853 when it insured travelers against accidents on steamboats and railroads, Travelers (NYSE: TRV) provides a wide range of commercial and personal property and casualty insurance products to businesses, government units, associations, and individuals.
Why Are We Positive On TRV?
- 10.3% annualized net premiums earned expansion over the last two years exceeded the sector average as its policies appealed to customers
- Additional sales over the last two years increased its profitability as the 52.8% annual growth in its earnings per share outpaced its revenue
- Capital generation for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust book value per share growth of 24.2%
At $282.73 per share, Travelers trades at 2.1x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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.
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