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. Keeping that in mind, here is one stock we think lives up to the hype and two not so much.
Two Stocks to Sell:
Hilton (HLT)
One-Month Return: +6.6%
Founded in 1919, Hilton Worldwide (NYSE: HLT) is a global hospitality company with a portfolio of hotel brands.
Why Are We Cautious About HLT?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 4.3% for the last five years
- Softer revenue per room over the past two years suggests it might have to invest in new amenities such as restaurants and bars to attract customers
- Estimated sales growth of 6.8% for the next 12 months implies demand will slow from its two-year trend
Hilton’s stock price of $264.88 implies a valuation ratio of 32.5x forward P/E. To fully understand why you should be careful with HLT, check out our full research report (it’s free).
Casella Waste Systems (CWST)
One-Month Return: -1.6%
Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ: CWST) offers waste management services for businesses, residents, and the government.
Why Does CWST Worry Us?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 4 percentage points
- Earnings per share were flat while its revenue grew over the last two years, partly because it issued new shares
Casella Waste Systems is trading at $115.39 per share, or 95.7x forward P/E. Dive into our free research report to see why there are better opportunities than CWST.
One Stock to Buy:
Popular (BPOP)
One-Month Return: +6.7%
Founded in 1893 as the first bank in Puerto Rico to serve the working class, Popular (NASDAQ: BPOP) is a financial holding company that provides retail, mortgage, and commercial banking services primarily in Puerto Rico and the mainland United States.
Why Is BPOP a Top Pick?
- Share buybacks catapulted its annual earnings per share growth to 11.8%, which outperformed its revenue gains over the last five years
- Annual tangible book value per share growth of 19.2% over the past two years was outstanding, reflecting strong capital accumulation this cycle
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $110.51 per share, Popular trades at 1.3x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. 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 Comfort Systems (+782% 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
