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?
- 2.6% annual revenue growth over the last two years was slower than its business services peers
- Revenue base of $1.21 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- 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?
- Unique products and pricing power are reflected in its best-in-class gross margin of 70.7%
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 54.6%
- 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?
- Annual revenue growth of 15.8% over the past five years was outstanding, reflecting market share gains this cycle
- Free cash flow margin is now positive, showing the company has crossed a key inflection point
- 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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