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.

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 that may correct.

Two IndustrialsStocks to Sell:

Fastenal (FAST)

One-Month Return: -1%

Founded in 1967, Fastenal (NASDAQ: FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.

Why Are We Wary of FAST?

1. Sales trends were unexciting over the last two years as its 3.3% annual growth was below the typical industrials company
2. Performance over the past two years shows its incremental sales were less profitable, as its 1.5% annual earnings per share growth trailed its revenue gains
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6 percentage points

Fastenal is trading at $40.80 per share, or 37.2x forward P/E. If you’re considering FAST for your portfolio, see our FREE research report to learn more.

GATX (GATX)

One-Month Return: +6.3%

Originally founded to ship beer, GATX (NYSE: GATX) provides leasing and management services for railcars and other transportation assets globally.

Why Does GATX Give Us Pause?

1. Demand for its offerings was relatively low as its number of active railcars has underwhelmed
2. Free cash flow margin shrank by 32.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. 9× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

GATX’s stock price of $156.35 implies a valuation ratio of 17.3x forward P/E. Dive into our free research report to see why there are better opportunities than GATX.

One Industrials Stock to Buy:

Axon (AXON)

One-Month Return: +20.7%

Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.

Why Will AXON Beat the Market?

1. Unit sales averaged 32% growth over the past two years and imply healthy demand for its products
2. Free cash flow margin expanded by 20.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
3. Historical investments are beginning to pay off as its returns on capital are growing

At $750 per share, Axon trades at 127.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.