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.
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 are two stocks with lasting competitive advantages and one best left ignored.
One Stock to Sell:
Mr. Cooper Group (COOP)
One-Month Return: +2.9%
Born from the 2018 merger of Nationstar Mortgage and WMIH Corp, Mr. Cooper Group (NASDAQ: COOP) is a non-bank servicer of residential mortgage loans that collects payments, manages escrow funds, and performs loss mitigation activities for 4.6 million customers.
Why Are We Wary of COOP?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- 8× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $153.47 per share, Mr. Cooper Group trades at 1.8x forward P/B. Read our free research report to see why you should think twice about including COOP in your portfolio.
Two Stocks to Watch:
Monster (MNST)
One-Month Return: -4%
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Are We Backing MNST?
- Highly efficient business model is illustrated by its impressive 27.3% operating margin
- MNST is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Monster’s stock price of $60.16 implies a valuation ratio of 32.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Broadridge (BR)
One-Month Return: +1.5%
Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE: BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.
Why Is BR on Our Radar?
- Impressive 9.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Additional sales over the last five years increased its profitability as the 11.7% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 4.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Broadridge is trading at $246.68 per share, or 27.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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 9 Market-Beating Stocks. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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