Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here is one stock with lasting competitive advantages and two not so much.

Two Stocks to Sell:

UFP Industries (UFPI)

One-Month Return: +5.5%

Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ: UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.

Why Should You Sell UFPI?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 7.9% annually over the last two years
2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 20.4% annually, worse than its revenue
3. Diminishing returns on capital suggest its earlier profit pools are drying up

UFP Industries’s stock price of $111.38 implies a valuation ratio of 20.1x forward P/E. If you’re considering UFPI for your portfolio, see our FREE research report to learn more.

Cincinnati Financial (CINF)

One-Month Return: +1.5%

Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ: CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.

Why Does CINF Give Us Pause?

1. Combined ratio failed to improve over the last two years, indicating the firm couldn’t optimize its expenses
2. Earnings per share lagged its peers over the last two years as they only grew by 14.7% annually
3. Estimated book value per share growth of 4.3% for the next 12 months implies profitability will slow from its two-year trend

At $163.24 per share, Cincinnati Financial trades at 1.6x forward P/B. Check out our free in-depth research report to learn more about why CINF doesn’t pass our bar.

One Stock to Watch:

McDonald's (MCD)

One-Month Return: +8%

With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE: MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.

Why Could MCD Be a Winner?

1. Fast expansion of new restaurants indicates an aggressive approach to attacking untapped market opportunities
2. Highly-profitable franchise model results in strong unit economics and a best-in-class gross margin of 57.1%
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety

McDonald's is trading at $326.99 per share, or 24.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.