The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here is one stock with the fundamentals to back up its performance and two best left ignored.
Two Stocks to Sell:
Hasbro (HAS)
One-Month Return: +9.9%
Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.
Why Are We Out on HAS?
- Products and services aren't resonating with the market as its revenue declined by 3.5% annually over the last five years
- Poor expense management has led to operating margin losses
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Hasbro’s stock price of $73.30 implies a valuation ratio of 17.5x forward P/E. To fully understand why you should be careful with HAS, check out our full research report (it’s free).
Radian Group (RDN)
One-Month Return: +5.3%
Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE: RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership.
Why Does RDN Worry Us?
- Annual net premiums earned declines of 3.8% for the past four years show its policy sales struggled during this cycle
- Day-to-day expenses have swelled relative to revenue over the last two years as its combined ratio increased by 34.1 percentage points
- Earnings per share fell by 6.6% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
Radian Group is trading at $35.95 per share, or 1x forward P/B. If you’re considering RDN for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Sterling (STRL)
One-Month Return: +23.4%
Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ: STRL) provides civil infrastructure construction.
Why Is STRL a Good Business?
- Market share has increased this cycle as its 11.9% annual revenue growth over the last five years was exceptional
- Free cash flow margin grew by 13.9 percentage points over the last five years, giving the company more chips to play with
- Rising returns on capital show management is finding more attractive investment opportunities
At $232.01 per share, Sterling trades at 29x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% 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