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. Keeping that in mind, here is one stock we think lives up to the hype and two best left ignored.
Two Stocks to Sell:
Olo (OLO)
One-Month Return: +17.8%
Founded by Noah Glass, who wanted to get a cup of coffee faster on his way to work, Olo (NYSE: OLO) provides restaurants and food retailers with software to manage food orders and delivery.
Why Is OLO Not Exciting?
- Bad unit economics and steep infrastructure costs are reflected in its gross margin of 54.7%, one of the worst among software companies
- Operating losses show it sacrificed profitability while scaling the business
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 7.4% for the last year
At $10.46 per share, Olo trades at 5.3x forward price-to-sales. To fully understand why you should be careful with OLO, check out our full research report (it’s free).
RTX (RTX)
One-Month Return: +8.6%
Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.
Why Do We Think Twice About RTX?
- Estimated sales growth of 4.7% for the next 12 months implies demand will slow from its two-year trend
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 4.8% annually
- ROIC of 3.7% reflects management’s challenges in identifying attractive investment opportunities
RTX is trading at $156.65 per share, or 25.5x forward P/E. If you’re considering RTX for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
EMCOR (EME)
One-Month Return: +18.3%
Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services
Why Will EME Beat the Market?
- Impressive 15.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 54.8% exceeded its revenue gains over the last two years
- Improving returns on capital reflect management’s ability to monetize investments
EMCOR’s stock price of $628 implies a valuation ratio of 26x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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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