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.

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 we think lives up to the hype and two that may correct.

Two Stocks to Sell:

Textron (TXT)

One-Month Return: +5.1%

Listed on the NYSE in 1947, Textron (NYSE: TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.

Why Are We Hesitant About TXT?

1. Annual sales growth of 3% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
2. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
3. Free cash flow margin dropped by 5.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $83.86 per share, Textron trades at 12.4x forward P/E. Read our free research report to see why you should think twice about including TXT in your portfolio.

Norfolk Southern (NSC)

One-Month Return: +3.6%

Starting with a single route from Virginia to North Carolina, Norfolk Southern (NYSE: NSC) is a freight transportation company operating a major railroad network across the eastern United States.

Why Should You Dump NSC?

1. Underwhelming unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
2. Flat earnings per share over the last two years lagged its peers
3. Free cash flow margin shrank by 6.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Norfolk Southern’s stock price of $294.07 implies a valuation ratio of 22.9x forward P/E. To fully understand why you should be careful with NSC, check out our full research report (it’s free for active Edge members).

One Stock to Buy:

Broadcom (AVGO)

One-Month Return: +7.7%

Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ: AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.

Why Should You Buy AVGO?

1. Annual revenue growth of 30% over the past two years was outstanding, reflecting market share gains this cycle
2. Superior product capabilities and pricing power lead to a best-in-class gross margin of 76.1%
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Broadcom is trading at $378.93 per share, or 45.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

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 6 Stocks for this week. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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