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 are two stocks with the fundamentals to back up their performance and one that may correct.
One Stock to Sell:
Northern Trust (NTRS)
One-Month Return: -4.5%
Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ: NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.
Why Does NTRS Fall Short?
- Muted 4.9% annual revenue growth over the last five years shows its demand lagged behind its financials peers
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 5.3% annually
Northern Trust is trading at $120.86 per share, or 14.6x forward P/E. If you’re considering NTRS for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Incyte (INCY)
One-Month Return: +27.7%
Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ: INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.
Why Could INCY Be a Winner?
- Annual revenue growth of 14.2% over the last two years beat the sector average and underscores the unique value of its offerings
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin grew by 6.2 percentage points over the last five years, giving the company more chips to play with
Incyte’s stock price of $88 implies a valuation ratio of 14.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Hamilton Insurance Group (HG)
One-Month Return: +15.4%
Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE: HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.
Why Do We Like HG?
- Annual revenue growth of 49.7% over the last two years was superb and indicates its market share increased during this cycle
- Net premiums earned expanded by 26% annually over the last two years, demonstrating exceptional market penetration this cycle
- Combined ratio expanded by 32.5 percentage points over the last two years as it scaled and became more efficient
At $24.94 per share, Hamilton Insurance Group trades at 0.9x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our 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 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
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