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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here are two stocks with lasting competitive advantages and one not so much.
One Stock to Sell:
TFS Financial (TFSL)
One-Month Return: +5.8%
Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial (NASDAQ: TFSL) is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.
Why Should You Dump TFSL?
- Muted 2.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Net interest margin of 1.7% is well below other banks, signaling its loans aren’t very profitable
- Tangible book value per share stagnated over the last two years, limiting its ability to leverage its balance sheet to make additional investments
TFS Financial’s stock price of $13.67 implies a valuation ratio of 2x forward P/B. Read our free research report to see why you should think twice about including TFSL in your portfolio.
Two Stocks to Watch:
MongoDB (MDB)
One-Month Return: +11.6%
Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ: MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.
Why Are We Fans of MDB?
- Market share has increased as its 34.6% annual revenue growth over the last five years was exceptional
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
MongoDB is trading at $355.37 per share, or 11.2x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Eli Lilly (LLY)
One-Month Return: +27.7%
Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.
Why Are We Backing LLY?
- Annual revenue growth of 36.1% over the past two years was outstanding, reflecting market share gains this cycle
- Adjusted operating margin expanded by 20.8 percentage points over the last two years as it scaled and became more efficient
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $1,025 per share, Eli Lilly trades at 34.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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