Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here is one stock with the fundamentals to back up its performance and two that may correct.
Two Stocks to Sell:
Collegium Pharmaceutical (COLL)
One-Month Return: +31.4%
Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ: COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.
Why Does COLL Worry Us?
- Subscale operations are evident in its revenue base of $757.1 million, meaning it has fewer distribution channels than its larger rivals
- Waning returns on capital imply its previous profit engines are losing steam
At $47.09 per share, Collegium Pharmaceutical trades at 6.3x forward P/E. If you’re considering COLL for your portfolio, see our FREE research report to learn more.
FB Financial (FBK)
One-Month Return: +5.4%
Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE: FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.
Why Are We Wary of FBK?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Earnings per share lagged its peers over the last five years as they only grew by 3.5% annually
- Below-average return on equity indicates management struggled to find compelling investment opportunities
FB Financial’s stock price of $57.02 implies a valuation ratio of 1.5x forward P/B. Dive into our free research report to see why there are better opportunities than FBK.
One Stock to Watch:
iRhythm (IRTC)
One-Month Return: -0.1%
Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ: IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders.
Why Does IRTC Stand Out?
- Market share has increased this cycle as its 23.4% annual revenue growth over the last five years was exceptional
- Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Free cash flow flipped to positive over the last five years, showing the company has crossed a key inflection point
iRhythm is trading at $180.31 per share, or 65.9x forward EV-to-EBITDA. Is now a good time to buy? See for yourself 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 5 Growth Stocks for this month. 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 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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