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.

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 is one stock we think lives up to the hype and two not so much.

Two Stocks to Sell:

Zurn Elkay (ZWS)

One-Month Return: +4.4%

Claiming to have saved more than 30 billion gallons of water, Zurn Elkay (NYSE: ZWS) provides water management solutions to various industries.

Why Are We Out on ZWS?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Performance over the past five years was negatively impacted by new share issuances as its earnings per share dropped by 6.1% annually, worse than its revenue
3. 5.5 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

Zurn Elkay’s stock price of $47.27 implies a valuation ratio of 33.4x forward P/E. If you’re considering ZWS for your portfolio, see our FREE research report to learn more.

U.S. Cellular (USM)

One-Month Return: +1.4%

Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, US Cellular (NYSE: USM) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services.

Why Should You Dump USM?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 1.6% annually over the last five years
2. Inability to adjust its cost structure while its revenue declined over the last five years led to a 5.2 percentage point drop in the company’s adjusted operating margin
3. Earnings per share have dipped by 16.5% annually over the past five years, which is concerning because stock prices follow EPS over the long term

U.S. Cellular is trading at $77.01 per share, or 7.7x forward EV-to-EBITDA. To fully understand why you should be careful with USM, check out our full research report (it’s free).

One Stock to Buy:

Comfort Systems (FIX)

One-Month Return: +6.5%

Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.

Why Are We Backing FIX?

1. Demand is greater than supply as the company’s 29.5% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Rising returns on capital show management is finding more attractive investment opportunities

At $765 per share, Comfort Systems trades at 38.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 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 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-micro-cap company Tecnoglass (+1,754% 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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