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. On that note, here are two stocks we think live up to the hype and one that may correct.

One Stock to Sell:

Sally Beauty (SBH)

One-Month Return: +9.2%

Catering to both everyday consumers as well as salon professionals, Sally Beauty (NYSE: SBH) is a retailer that sells salon-quality beauty products such as makeup and haircare products.

Why Do We Pass on SBH?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
2. Smaller revenue base of $3.69 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Earnings per share have contracted by 2.7% annually over the last six years, a headwind for returns as stock prices often echo long-term EPS performance

Sally Beauty is trading at $14.75 per share, or 7.9x forward P/E. Check out our free in-depth research report to learn more about why SBH doesn’t pass our bar.

Two Stocks to Watch:

RB Global (RBA)

One-Month Return: -0.5%

Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE: RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.

Why Is RBA a Good Business?

1. Annual revenue growth of 33.6% over the last two years was superb and indicates its market share increased during this cycle
2. Earnings per share grew by 20.6% annually over the last five years and trumped its peers
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

At $114.42 per share, RB Global trades at 28x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

OFG Bancorp (OFG)

One-Month Return: -0.2%

Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE: OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands.

Why Do We Like OFG?

1. Non-interest operating profits and efficiency rose over the last four years as it benefited from some fixed cost leverage
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. Annual tangible book value per share growth of 11.8% over the last five years was superb and indicates its capital strength increased during this cycle

OFG Bancorp’s stock price of $44.45 implies a valuation ratio of 1.4x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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-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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