The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here is one stock we think lives up to the hype and two not so much.

Two Stocks to Sell:

Levi's (LEVI)

One-Month Return: +20.3%

Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE: LEVI) is an apparel company renowned for its iconic denim products and classic American style.

Why Are We Out on LEVI?

1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
2. Anticipated sales growth of 2.8% for the next year implies demand will be shaky
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $20.98 per share, Levi's trades at 16.5x forward P/E. To fully understand why you should be careful with LEVI, check out our full research report (it’s free).

MSC Industrial (MSM)

One-Month Return: +5.4%

Founded in NYC’s Little Italy, MSC Industrial Direct (NYSE: MSM) provides industrial supplies and equipment, offering vast and reliable selection for customers such as contractors

Why Should You Sell MSM?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Projected sales growth of 3.3% for the next 12 months suggests sluggish demand
3. Earnings per share fell by 5.6% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

MSC Industrial is trading at $85.93 per share, or 22.8x forward P/E. Read our free research report to see why you should think twice about including MSM in your portfolio.

One Stock to Watch:

Astronics (ATRO)

One-Month Return: -0.7%

Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.

Why Could ATRO Be a Winner?

1. Market share has increased this cycle as its 19.1% annual revenue growth over the last two years was exceptional
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 81.3% outpaced its revenue gains
3. Improving returns on capital suggest its past investments are beginning to deliver value

Astronics’s stock price of $34.27 implies a valuation ratio of 22.4x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% 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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