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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here is one stock we think lives up to the hype and two best left ignored.
Two Stocks to Sell:
Accel Entertainment (ACEL)
One-Month Return: +10.1%
Established in Illinois, Accel Entertainment (NYSE: ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.
Why Are We Wary of ACEL?
- Performance surrounding its video gaming terminals sold has lagged its peers
- Estimated sales growth of 6.9% for the next 12 months implies demand will slow from its two-year trend
- Poor free cash flow margin of 4.4% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Accel Entertainment’s stock price of $12.92 implies a valuation ratio of 13.8x forward P/E. If you’re considering ACEL for your portfolio, see our FREE research report to learn more.
TowneBank (TOWN)
One-Month Return: +5.1%
Founded in 1998 with a commitment to community-centered banking in the Hampton Roads region, TowneBank (NASDAQ: TOWN) is a community-focused financial institution providing banking, lending, and wealth management services to individuals and businesses in Virginia and North Carolina.
Why Does TOWN Fall Short?
- 4.2% annual net interest income growth over the last four years was slower than its bank peers
- Weak unit economics are reflected in its net interest margin of 3%, one of the worst among bank companies
- Costs have risen faster than its revenue over the last four years, causing its efficiency ratio to worsen by 13.6 percentage points
At $35.88 per share, TowneBank trades at 1.2x forward P/B. Check out our free in-depth research report to learn more about why TOWN doesn’t pass our bar.
One Stock to Watch:
Armstrong World (AWI)
One-Month Return: +5.8%
Started as a two-man shop dating back to the 1860s, Armstrong (NYSE: AWI) provides ceiling and wall products to commercial and residential spaces.
Why Are We Fans of AWI?
- 9.2% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 24.6%
- Strong free cash flow margin of 19.6% enables it to reinvest or return capital consistently
Armstrong World is trading at $167.50 per share, or 23.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2024 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 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-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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