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:

CBRE (CBRE)

One-Month Return: +14%

Established in 1906, CBRE (NYSE: CBRE) is one of the largest commercial real estate services firms in the world.

Why Is CBRE Risky?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 9.4% over the last five years was below our standards for the consumer discretionary sector
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $158.93 per share, CBRE trades at 24.7x forward P/E. Dive into our free research report to see why there are better opportunities than CBRE.

Barrett (BBSI)

One-Month Return: +5.5%

Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ: BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.

Why Does BBSI Give Us Pause?

1. Smaller revenue base of $1.20 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
2. 10.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Barrett is trading at $46.03 per share, or 19.9x forward P/E. If you’re considering BBSI for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

PTC (PTC)

One-Month Return: +2.9%

Originally known as Parametric Technology Corporation until its 2013 rebranding, PTC (NASDAQ: PTC) provides software that helps manufacturers design, develop, and service physical products through digital solutions for CAD, PLM, ALM, and SLM.

Why Does PTC Stand Out?

1. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
2. Excellent operating margin of 30% highlights the efficiency of its business model, and its profits increased over the last year as it scaled
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

PTC’s stock price of $205.40 implies a valuation ratio of 9x forward price-to-sales. Is now the time to initiate a position? Find out in our full 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 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-micro-cap company Kadant (+351% 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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