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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here are two stocks with the fundamentals to back up their performance and one not so much.

One Stock to Sell:

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 Do We Avoid CSGS?

1. 2.6% annual revenue growth over the last two years was slower than its business services peers
2. Revenue base of $1.21 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $65.95 per share, CSG trades at 13.5x forward P/E. To fully understand why you should be careful with CSGS, check out our full research report (it’s free for active Edge members).

Two Stocks to Watch:

Altria (MO)

One-Month Return: +1.2%

Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.

Why Do We Like MO?

1. Unique products and pricing power are reflected in its best-in-class gross margin of 70.7%
2. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 54.6%
3. Robust free cash flow margin of 43.3% gives it many options for capital deployment

Altria is trading at $64.56 per share, or 11.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

Bloom Energy (BE)

One-Month Return: +27.5%

Working in stealth mode for eight years, Bloom Energy (NYSE: BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.

Why Are We Bullish on BE?

1. Annual revenue growth of 15.8% over the past five years was outstanding, reflecting market share gains this cycle
2. Free cash flow margin is now positive, showing the company has crossed a key inflection point
3. Improving returns on capital suggest its past investments are beginning to deliver value

Bloom Energy’s stock price of $109.97 implies a valuation ratio of 186.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "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 5 Strong Momentum 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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