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 with lasting competitive advantages and two that may correct.
Two Stocks to Sell:
Fastenal (FAST)
One-Month Return: +7.9%
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 Do We Think Twice About FAST?
- 3.6% annual revenue growth over the last two years was slower than its industrials peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 2.8% annually
- 4.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Fastenal is trading at $48.69 per share, or 45.3x forward P/E. To fully understand why you should be careful with FAST, check out our full research report (it’s free).
Hartford (HIG)
One-Month Return: +9.7%
Recognizable by its iconic stag logo that dates back to 1810, The Hartford (NYSE: HIG) provides property and casualty insurance, group benefits, and investment products to individuals and businesses across the United States.
Why Does HIG Fall Short?
- Outsized scale creates growth headwinds as its 6.2% annualized net premiums earned increases over the last five years underperformed other financial institutions
- Forecasted revenue decline of 17.5% for the upcoming 12 months implies demand will fall off a cliff
- Scale is a double-edged sword because it limits the firm’s capital growth potential compared to its smaller competitors, as reflected in its below-average annual book value per share increases of 5.4% for the last five years
Hartford’s stock price of $131.34 implies a valuation ratio of 2.1x forward P/B. Check out our free in-depth research report to learn more about why HIG doesn’t pass our bar.
One Stock to Buy:
Palantir (PLTR)
One-Month Return: +22.2%
Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE: PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions.
Why Will PLTR Outperform?
- Billings growth has averaged 44.2% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Robust free cash flow margin of 55% gives it many options for capital deployment
At $181.54 per share, Palantir trades at 94.9x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, 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 6 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-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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