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. Keeping that in mind, here is one stock we think lives up to the hype and two that may correct.

Two Stocks to Sell:

Ralph Lauren (RL)

One-Month Return: +9.8%

Originally founded as a necktie company, Ralph Lauren (NYSE: RL) is an iconic American fashion brand known for its classic and sophisticated style.

Why Do We Think Twice About RL?

1. 2.8% annual revenue growth over the last five years was slower than its consumer discretionary peers
2. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
3. Projected sales growth of 5.1% for the next 12 months suggests sluggish demand

Ralph Lauren is trading at $298.75 per share, or 22.2x forward P/E. If you’re considering RL for your portfolio, see our FREE research report to learn more.

MasTec (MTZ)

One-Month Return: +8.2%

Involved in the 1996 Olympic Games MasTec (NYSE: MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.

Why Are We Cautious About MTZ?

1. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 13.1%
2. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 3.7 percentage points
3. Annual earnings per share growth of 2.1% underperformed its revenue over the last five years, showing its incremental sales were less profitable

At $182.01 per share, MasTec trades at 29x forward P/E. Check out our free in-depth research report to learn more about why MTZ doesn’t pass our bar.

One Stock to Watch:

Ollie's (OLLI)

One-Month Return: +3.6%

Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet (NASDAQ: OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts.

Why Is OLLI on Our Radar?

1. Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
2. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 4.1% over the past two years
3. Demand for the next 12 months is expected to accelerate above its six-year trend as Wall Street forecasts robust revenue growth of 14.1%

Ollie’s stock price of $135.20 implies a valuation ratio of 35.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 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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