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 with the fundamentals to back up its performance and two that may correct.

Two Stocks to Sell:

VSE Corporation (VSEC)

One-Month Return: -5.8%

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ: VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

Why Is VSEC Not Exciting?

1. Gross margin of 13.9% reflects its high production costs
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

VSE Corporation’s stock price of $131.16 implies a valuation ratio of 36.5x forward P/E. Read our free research report to see why you should think twice about including VSEC in your portfolio.

U.S. Cellular (USM)

One-Month Return: +11.3%

Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, US Cellular (NYSE: USM) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services.

Why Should You Sell USM?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.6% annually over the last five years
2. Adjusted operating margin declined by 5.6 percentage points over the last five years as its sales cratered
3. Earnings per share have dipped by 18% annually over the past five years, which is concerning because stock prices follow EPS over the long term

U.S. Cellular is trading at $70.48 per share, or 6.3x forward EV-to-EBITDA. If you’re considering USM for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Stryker (SYK)

One-Month Return: +3.5%

With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.

Why Do We Watch SYK?

1. Core business can prosper without any help from acquisitions as its organic revenue growth averaged 10.4% over the past two years
2. Revenue base of $23.22 billion gives it economies of scale and some negotiating power
3. Free cash flow margin of 14.6% is higher than many in the industry, giving it breathing room and optionality

At $400.12 per share, Stryker trades at 29x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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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