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.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here is one stock with the fundamentals to back up its performance and two best left ignored.

Two Stocks to Sell:

GMS (GMS)

One-Month Return: -0.5%

Founded in 1971, GMS (NYSE: GMS) distributes specialty building materials including wallboard, ceilings, and insulation products, to the construction industry.

Why Does GMS Fall Short?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
3. Earnings per share have dipped by 18.1% annually over the past two years, which is concerning because stock prices follow EPS over the long term

GMS’s stock price of $109.52 implies a valuation ratio of 17.8x forward P/E. Dive into our free research report to see why there are better opportunities than GMS.

CSG (CSGS)

One-Month Return: +0.4%

Powering billions of critical customer interactions annually, CSG Systems (NASDAQ: CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services.

Why Should You Sell CSGS?

1. 2.6% annual revenue growth over the last two years was slower than its business services peers
2. Subscale operations are evident in its revenue base of $1.21 billion, meaning it has fewer distribution channels than its larger rivals
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $62.87 per share, CSG trades at 12.8x forward P/E. To fully understand why you should be careful with CSGS, check out our full research report (it’s free).

One Stock to Buy:

Cloudflare (NET)

One-Month Return: +10%

Founded by two grad students of Harvard Business School, Cloudflare (NYSE: NET) is a software-as-a-service platform that helps improve the security, reliability, and loading times of internet applications.

Why Will NET Beat the Market?

1. Winning new contracts that can potentially increase in value as its billings growth has averaged 30.3% over the last year
2. Expected revenue growth of 26.3% for the next year suggests its market share will rise
3. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently

Cloudflare is trading at $201.27 per share, or 29.4x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% 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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