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. On that note, here is one stock with lasting competitive advantages and two that may correct.
Two Stocks to Sell:
Great Lakes Dredge & Dock (GLDD)
One-Month Return: +5.7%
Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ: GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.
Why Does GLDD Worry Us?
- Backlog growth averaged a weak 4.2% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy
- Gross margin of 16.9% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Cash-burning history makes us doubt the long-term viability of its business model
Great Lakes Dredge & Dock’s stock price of $11.66 implies a valuation ratio of 13.2x forward P/E. To fully understand why you should be careful with GLDD, check out our full research report (it’s free for active Edge members).
Old Republic International (ORI)
One-Month Return: +8%
Founded during the Roaring Twenties in 1923 and weathering nearly a century of economic cycles, Old Republic International (NYSE: ORI) is a diversified insurance holding company that provides property, liability, title, and mortgage guaranty insurance through its various subsidiaries.
Why Are We Hesitant About ORI?
- Growth in insurance policies was lackluster over the last five years as its 3.3% annual growth underperformed the typical financial institution
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 9.9% annually
- Projected book value per share decline of 1% for the next 12 months points to tough credit quality challenges ahead
At $45.09 per share, Old Republic International trades at 1.7x forward P/B. If you’re considering ORI for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Cincinnati Financial (CINF)
One-Month Return: +5.7%
Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ: CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.
Why Do We Watch CINF?
- Market penetration was impressive this cycle as its net premiums earned expanded by 12.1% annually over the last two years
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 21.6% exceeded its revenue gains over the last five years
- Annual book value per share growth of 20.8% over the past two years was outstanding, reflecting strong capital accumulation this cycle
Cincinnati Financial is trading at $163.72 per share, or 1.6x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 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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