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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here are two stocks we think live up to the hype and one that may correct.
One Stock to Sell:
STERIS (STE)
One-Month Return: +9.9%
With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE: STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.
Why Does STE Fall Short?
- ROIC of 4.9% reflects management’s challenges in identifying attractive investment opportunities
STERIS’s stock price of $248.98 implies a valuation ratio of 24.3x forward P/E. To fully understand why you should be careful with STE, check out our full research report (it’s free).
Two Stocks to Watch:
Veeva Systems (VEEV)
One-Month Return: -3.3%
Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems (NYSE: VEEV) provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.
Why Is VEEV Interesting?
- Average billings growth of 17.8% over the last year enhances its liquidity and shows there is steady demand for its products
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Projected to achieve positive free cash flow next year, showing the company is at a key inflection point
At $283 per share, Veeva Systems trades at 15.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Webster Financial (WBS)
One-Month Return: +5.2%
Founded during the Great Depression in 1935 and evolving into a major Northeastern financial institution, Webster Financial (NYSE: WBS) is a bank holding company that provides commercial banking, consumer banking, and employee benefits solutions through its Webster Bank and HSA Bank division.
Why Do We Like WBS?
- Impressive 22.1% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Efficiency ratio improved by 12.8 percentage points over the last four years as it scaled
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 13.8% annually
Webster Financial is trading at $62.63 per share, or 1.1x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-small-cap company Comfort Systems (+782% 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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