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1 Mooning Stock to Target This Week and 2 Facing Headwinds

DDS 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. All that said, here is one stock with lasting competitive advantages and two best left ignored.

Two Stocks to Sell:

Dillard's (DDS)

One-Month Return: +10.9%

With stores located largely in the Southern and Western US, Dillard’s (NYSE: DDS) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Why Does DDS Give Us Pause?

  1. Failure to add new stores points to soft demand and a focus on boosting sales at current locations
  2. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
  3. Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term

At $681.61 per share, Dillard's trades at 23.8x forward P/E. If you’re considering DDS for your portfolio, see our FREE research report to learn more.

Provident Financial Services (PFS)

One-Month Return: +8.3%

Founded in 1839 and serving communities across New Jersey, Pennsylvania, and New York, Provident Financial Services (NYSE: PFS) operates a regional bank providing commercial, residential, and consumer lending alongside wealth management and insurance services.

Why Does PFS Worry Us?

  1. Weak unit economics are reflected in its net interest margin of 3.3%, one of the worst among bank companies
  2. Annual earnings per share growth of 2.2% underperformed its revenue over the last two years, showing its incremental sales were less profitable
  3. Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 1.3% annually over the last two years

Provident Financial Services is trading at $20.03 per share, or 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than PFS.

One Stock to Buy:

LendingClub (LC)

One-Month Return: +2.4%

Pioneering peer-to-peer lending in the US before evolving into a digital bank, LendingClub (NYSE: LC) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.

Why Should You Buy LC?

  1. Impressive 24.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
  2. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 38.3% annually

LendingClub’s stock price of $19.61 implies a valuation ratio of 12.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

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-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

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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