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 is one stock with the fundamentals to back up its performance and two not so much.

Two Stocks to Sell:

West Pharmaceutical Services (WST)

One-Month Return: +19.1%

Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE: WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.

Why Are We Wary of WST?

1. 4.9% annual revenue growth over the last two years was slower than its healthcare peers
2. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 5.8 percentage points
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

West Pharmaceutical Services is trading at $291.96 per share, or 34.6x forward P/E. Check out our free in-depth research report to learn more about why WST doesn’t pass our bar.

Horace Mann Educators (HMN)

One-Month Return: +7.1%

Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE: HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.

Why Is HMN Risky?

1. Net premiums earned expanded by 5.7% annually over the last five years, falling below our expectations for the insurance sector
2. Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 3.3% annually over the last five years
3. Low return on equity reflects management’s struggle to allocate funds effectively

Horace Mann Educators’s stock price of $46.15 implies a valuation ratio of 1.2x forward P/B. If you’re considering HMN for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Northern Trust (NTRS)

One-Month Return: +22.5%

Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ: NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.

Why Are We Positive On NTRS?

1. Share buybacks catapulted its annual earnings per share growth to 32.1%, which outperformed its revenue gains over the last two years
2. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

At $166.89 per share, Northern Trust trades at 15.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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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.