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 are two stocks with the fundamentals to back up their performance and one that may correct.

One Stock to Sell:

Take-Two (TTWO)

One-Month Return: +3.4%

Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ: TTWO) is one of the world’s largest video game publishers.

Why Does TTWO Worry Us?

1. Efficiency fell over the last few years as its EBITDA margin declined by 8.3 percentage points because it pursued growth instead of profits
2. Incremental sales over the last three years were much less profitable as its earnings per share fell by 109% annually while its revenue grew
3. Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model

At $242.88 per share, Take-Two trades at 20.4x forward EV/EBITDA. If you’re considering TTWO for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Core & Main (CNM)

One-Month Return: +7.1%

Formerly a division of industrial distributor HD Supply, Core & Main (NYSE: CNM) is a provider of water, wastewater, and fire protection products and services.

Why Does CNM Stand Out?

1. Annual revenue growth of 17.1% over the last five years was superb and indicates its market share increased during this cycle
2. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
3. Share repurchases over the last two years enabled its annual earnings per share growth of 19.2% to outpace its revenue gains

Core & Main’s stock price of $62.25 implies a valuation ratio of 25.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Amphenol (APH)

One-Month Return: +5.9%

With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.

Why Are We Backing APH?

1. Market share has increased this cycle as its 15.2% annual revenue growth over the last two years was exceptional
2. Enormous revenue base of $16.78 billion provides significant distribution advantages
3. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 20.5% annually

Amphenol is trading at $97.97 per share, or 41.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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