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 lasting competitive advantages and one not so much.

One Stock to Sell:

TFS Financial (TFSL)

One-Month Return: +5.8%

Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial (NASDAQ: TFSL) is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.

Why Should You Dump TFSL?

1. Muted 2.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
2. Net interest margin of 1.7% is well below other banks, signaling its loans aren’t very profitable
3. Tangible book value per share stagnated over the last two years, limiting its ability to leverage its balance sheet to make additional investments

TFS Financial’s stock price of $13.67 implies a valuation ratio of 2x forward P/B. Read our free research report to see why you should think twice about including TFSL in your portfolio.

Two Stocks to Watch:

MongoDB (MDB)

One-Month Return: +11.6%

Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ: MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.

Why Are We Fans of MDB?

1. Market share has increased as its 34.6% annual revenue growth over the last five years was exceptional
2. ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability

MongoDB is trading at $355.37 per share, or 11.2x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Eli Lilly (LLY)

One-Month Return: +27.7%

Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.

Why Are We Backing LLY?

1. Annual revenue growth of 36.1% over the past two years was outstanding, reflecting market share gains this cycle
2. Adjusted operating margin expanded by 20.8 percentage points over the last two years as it scaled and became more efficient
3. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

At $1,025 per share, Eli Lilly trades at 34.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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