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1 Surging Stock for Long-Term Investors and 2 That Underwhelm

TTWO Cover Image

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 is one stock we think lives up to the hype and two that may correct.

Two Stocks to Sell:

Amkor (AMKR)

One-Month Return: +3.3%

Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ: AMKR) provides outsourced packaging and testing for semiconductors.

Why Are We Cautious About AMKR?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 4.4% annually over the last two years
  2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 14.4%
  3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 6.1% for the last two years

Amkor’s stock price of $30.55 implies a valuation ratio of 23.8x forward P/E. Dive into our free research report to see why there are better opportunities than AMKR.

Estée Lauder (EL)

One-Month Return: +12.4%

Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE: EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming.

Why Are We Wary of EL?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs
  3. Sales were less profitable over the last three years as its earnings per share fell by 40.8% annually, worse than its revenue declines

Estée Lauder is trading at $98.60 per share, or 47.5x forward P/E. To fully understand why you should be careful with EL, check out our full research report (it’s free for active Edge members).

One Stock to Watch:

Take-Two (TTWO)

One-Month Return: +1.7%

Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ: TTWO) is one of the world’s largest video game publishers.

Why Should TTWO Be on Your Watchlist?

  1. Strong consumer demand for its platform drove 16.5% annual revenue growth over the last three years, outperforming sector peers
  2. Exciting sales outlook for the upcoming 12 months calls for 39.2% growth, an acceleration from its three-year trend
  3. Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 14.3%

At $255.58 per share, Take-Two trades at 31.9x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.

Stocks We Like Even More

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 6 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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