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. Keeping that in mind, here are two stocks with the fundamentals to back up their performance and one that may correct.
One Stock to Sell:
News Corp (NWSA)
One-Month Return: +7.1%
Established in 2013 after a restructuring, News Corp (NASDAQ: NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
Why Do We Pass on NWSA?
- Annual sales declines of 1.3% for the past five years show its products and services struggled to connect with the market
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.6%
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
At $30.89 per share, News Corp trades at 31.6x forward P/E. Check out our free in-depth research report to learn more about why NWSA doesn’t pass our bar.
Two Stocks to Buy:
ESCO (ESE)
One-Month Return: +2.9%
A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO (NYSE: ESE) is a provider of engineered components for the aerospace, defense, and utility sectors.
Why Are We Backing ESE?
- Market share is on track to rise over the next 12 months as its 23.1% projected revenue growth implies demand will accelerate from its two-year trend
- Superior product capabilities and pricing power result in a premier gross margin of 39.1%
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 22.4% over the last two years outstripped its revenue performance
ESCO is trading at $206.97 per share, or 31.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
McKesson (MCK)
One-Month Return: +10.2%
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Will MCK Outperform?
- 15.3% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Massive revenue base of $377.6 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Share repurchases over the last five years enabled its annual earnings per share growth of 18.3% to outpace its revenue gains
McKesson’s stock price of $761.82 implies a valuation ratio of 19.7x 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
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 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
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