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. All that said, here is one stock with lasting competitive advantages and two that may correct.

Two Stocks to Sell:

Simmons First National (SFNC)

One-Month Return: +10.5%

With roots dating back to 1903 and a presence across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas, Simmons First National (NASDAQ: SFNC) is a regional bank holding company that provides banking and financial services to individuals and businesses.

Why Do We Steer Clear of SFNC?

1. Annual net interest income growth of 4% over the last five years was below our standards for the banking sector
2. Projected 18.2 percentage point efficiency ratio increase over the next year signals its day-to-day expenses will rise
3. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 4% annually

At $21.18 per share, Simmons First National trades at 0.9x forward P/B. To fully understand why you should be careful with SFNC, check out our full research report (it’s free).

RPC (RES)

One-Month Return: +7.1%

Operating primarily in the Permian Basin with 10 hydraulic fracturing fleets, RPC (NYSE: RES) provides specialized services and equipment like hydraulic fracturing, coiled tubing, and cementing to help oil and gas companies complete and maintain wells.

Why Do We Think Twice About RES?

1. Subscale operations are evident in its revenue base of $1.63 billion, meaning it has fewer distribution channels than its larger rivals
2. High extraction costs and unfavorable asset economics are reflected in its low gross margin of 28.3%
3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 6.1% for the last five years

RPC’s stock price of $7.38 implies a valuation ratio of 34.9x forward P/E. If you’re considering RES for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

ESCO (ESE)

One-Month Return: +16.1%

A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO (NYSE: ESE) is a provider of engineered components for the aerospace, defense, and utility sectors.

Why Should You Buy ESE?

1. Market share has increased this cycle as its 11.5% annual revenue growth over the last two years was exceptional
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 36.3% over the last two years outstripped its revenue performance
3. Free cash flow margin grew by 10.9 percentage points over the last five years, giving the company more chips to play with

ESCO is trading at $311.10 per share, or 37.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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.