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. Keeping that in mind, here is one stock with the fundamentals to back up its performance and two best left ignored.

Two Stocks to Sell:

Labcorp (LH)

One-Month Return: +7.8%

With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp (NYSE: LH) provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide.

Why Are We Wary of LH?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 14.3 percentage points
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Labcorp’s stock price of $269.31 implies a valuation ratio of 16x forward P/E. Check out our free in-depth research report to learn more about why LH doesn’t pass our bar.

Allstate (ALL)

One-Month Return: +5.4%

Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous "You're in good hands" slogan, Allstate (NYSE: ALL) is one of America's largest personal property and casualty insurers, offering protection for autos, homes, and personal property.

Why Are We Cautious About ALL?

1. Operational productivity has decreased over the last four years as its combined ratio worsened by 4.8 percentage points
2. Book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle
3. Underwhelming 11.6% return on equity reflects management’s difficulties in finding profitable growth opportunities

At $206.70 per share, Allstate trades at 2.4x forward P/B. Read our free research report to see why you should think twice about including ALL in your portfolio.

One Stock to Watch:

AZZ (AZZ)

One-Month Return: +6.4%

Responsible for projects like nuclear facilities, AZZ (NYSE: AZZ) is a provider of metal coating and power infrastructure solutions.

Why Do We Like AZZ?

1. Healthy operating margin of 14.7% shows it’s a well-run company with efficient processes, and its operating leverage amplified its profits over the last five years
2. Additional sales over the last two years increased its profitability as the 24.5% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin grew by 13.5 percentage points over the last five years, giving the company more chips to play with

AZZ is trading at $113.57 per share, or 18.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

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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