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1 Surging Stock with Solid Fundamentals and 2 We Brush Off

TEX Cover Image

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.

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 the fundamentals to back up its performance and two best left ignored.

Two Stocks to Sell:

Terex (TEX)

One-Month Return: +12.2%

With humble beginnings as a dump truck company, Terex (NYSE: TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.

Why Are We Hesitant About TEX?

  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. Earnings per share fell by 19.3% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
  3. Free cash flow margin shrank by 3.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $61.58 per share, Terex trades at 11.3x forward P/E. To fully understand why you should be careful with TEX, check out our full research report (it’s free).

HA Sustainable Infrastructure Capital (HASI)

One-Month Return: +6.2%

With a proprietary "CarbonCount" metric that quantifies the environmental impact of each dollar invested, HA Sustainable Infrastructure Capital (NYSE: HASI) is an investment firm that finances and develops climate-positive infrastructure projects across renewable energy, energy efficiency, and ecological restoration.

Why Are We Cautious About HASI?

  1. Below-average return on equity indicates management struggled to find compelling investment opportunities
  2. High net-debt-to-EBITDA ratio of 29× could force the company to raise capital at unfavorable terms if market conditions deteriorate

HA Sustainable Infrastructure Capital is trading at $34.98 per share, or 12.1x forward P/E. Read our free research report to see why you should think twice about including HASI in your portfolio.

One Stock to Watch:

Gorman-Rupp (GRC)

One-Month Return: +7.9%

Powering fluid dynamics since 1934, Gorman-Rupp (NYSE: GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.

Why Are We Fans of GRC?

  1. Impressive 13.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
  2. Sales pipeline is in good shape as its backlog averaged 12.7% growth over the past two years
  3. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 33% annually

Gorman-Rupp’s stock price of $53.85 implies a valuation ratio of 24.2x 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

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.

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