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2 Mooning Stocks on Our Buy List and 1 Facing Headwinds

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Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.

But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here are two stocks we think live up to the hype and one not so much.

One Stock to Sell:

MasTec (MTZ)

One-Month Return: +21.1%

Involved in the 1996 Olympic Games MasTec (NYSE: MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.

Why Are We Hesitant About MTZ?

  1. Gross margin of 13.1% is below its competitors, leaving less money to invest in areas like marketing and R&D
  2. Operating margin of 3% decreased from an already low base, demonstrating the tradeoff between growth and profitability
  3. 3.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

MasTec is trading at $214 per share, or 33.1x forward P/E. To fully understand why you should be careful with MTZ, check out our full research report (it’s free for active Edge members).

Two Stocks to Buy:

Palantir Technologies (PLTR)

One-Month Return: +12.4%

Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ: PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.

Why Will PLTR Outperform?

  1. Billings have averaged 44.2% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
  2. Software platform has product-market fit given the rapid recovery of its customer acquisition costs
  3. Strong free cash flow margin of 55% enables it to reinvest or return capital consistently

At $175.43 per share, Palantir Technologies trades at 90.7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

FB Financial (FBK)

One-Month Return: +8.3%

Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE: FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.

Why Do We Love FBK?

  1. Impressive 14.4% annual net interest income growth over the last five years indicates it’s winning market share this cycle
  2. Market share is on track to rise over the next 12 months as its 32.6% projected net interest income growth implies demand will accelerate from its five-year trend
  3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 6% annually

FB Financial’s stock price of $58.19 implies a valuation ratio of 1.5x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

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 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 Exlservice (+354% 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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