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1 Mooning Stock to Keep an Eye On and 2 We Brush Off

PRIM Cover Image

The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here is one stock we think lives up to the hype and two best left ignored.

Two Stocks to Sell:

Brookdale (BKD)

One-Month Return: +5.7%

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Why Does BKD Fall Short?

  1. Annual sales declines of 3.8% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Underwhelming -0.5% return on capital reflects management’s difficulties in finding profitable growth opportunities

Brookdale’s stock price of $8.95 implies a valuation ratio of 4.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BKD doesn’t pass our bar.

Maximus (MMS)

One-Month Return: -6.8%

With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE: MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.

Why Are We Cautious About MMS?

  1. Estimated sales growth of 3.2% for the next 12 months implies demand will slow from its two-year trend
  2. Free cash flow margin shrank by 11.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

Maximus is trading at $85.14 per share, or 11.5x forward P/E. Read our free research report to see why you should think twice about including MMS in your portfolio.

One Stock to Watch:

Primoris (PRIM)

One-Month Return: +7.3%

Listed on the NASDAQ in 2008, Primoris (NYSE: PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.

Why Do We Like PRIM?

  1. Market share has increased this cycle as its 15.9% annual revenue growth over the last five years was exceptional
  2. Sales pipeline is in good shape as its backlog averaged 159% growth over the past two years
  3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 28.6% annually

At $147.39 per share, Primoris trades at 28.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.

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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