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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here is one stock we think lives up to the hype and two that may correct.
Two Stocks to Sell:
10x Genomics (TXG)
One-Month Return: +28.6%
Founded in 2012 by scientists seeking to overcome limitations in traditional biological research methods, 10x Genomics (NASDAQ: TXG) develops instruments, consumables, and software that enable researchers to analyze biological systems at single-cell resolution and spatial context.
Why Do We Steer Clear of TXG?
- Muted 1.1% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
- Revenue base of $638.8 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Push for growth has led to negative returns on capital, signaling value destruction
At $49.29 per share, 10x Genomics trades at 9.5x forward price-to-sales. If you’re considering TXG for your portfolio, see our FREE research report to learn more.
Peoples Bancorp (PEBO)
One-Month Return: +8.2%
Founded in 1902 in Ohio and expanding through both organic growth and acquisitions, Peoples Bancorp (NASDAQ: PEBO) is a financial holding company that provides banking, insurance, equipment leasing, and investment services to consumers and businesses.
Why Are We Bearish on PEBO?
- Annual revenue growth of 2.4% over the last two years was below our standards for the banking sector
- Incremental sales over the last five years were less profitable as its 1.1% annual earnings per share growth lagged its revenue gains
- Estimated tangible book value per share growth of 5.6% for the next 12 months implies profitability will slow from its two-year trend
Peoples Bancorp is trading at $41.57 per share, or 1.2x forward P/B. Read our free research report to see why you should think twice about including PEBO in your portfolio.
One Stock to Watch:
Berkshire Hathaway (BRK.A)
One-Month Return: +2.2%
Led by legendary investor Warren Buffett since 1965, transforming it from a struggling textile manufacturer into a corporate giant, Berkshire Hathaway (NYSE: BRK.A) is a diversified holding company that owns businesses across insurance, railroads, utilities, manufacturing, retail, and services sectors.
Why Do We Watch BRK.A?
- Earnings growth has easily exceeded the peer group average over the last two years as its EPS has compounded at 18.9% annually
- Annual tangible book value per share growth of 15.9% over the past five years was outstanding, reflecting strong capital accumulation this cycle
- ROE punches in at 13.2%, illustrating management’s expertise in identifying profitable investments
Berkshire Hathaway’s stock price of $764,985 implies a valuation ratio of 23.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
