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.
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 not so much.
Two Stocks to Sell:
Lindsay (LNN)
One-Month Return: +0.1%
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services.
Why Does LNN Fall Short?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Sales are projected to tank by 2.6% over the next 12 months as its demand continues evaporating
- Earnings per share lagged its peers over the last two years as they only grew by 4% annually
Lindsay is trading at $140.56 per share, or 22.1x forward P/E. To fully understand why you should be careful with LNN, check out our full research report (it’s free for active Edge members).
Allstate (ALL)
One-Month Return: +4.3%
Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous "You're in good hands" slogan, Allstate (NYSE:ALL) is one of America's largest personal property and casualty insurers, offering protection for autos, homes, and personal property.
Why Are We Wary of ALL?
- Estimated sales growth of 4% for the next 12 months implies demand will slow from its two-year trend
- Day-to-day expenses have swelled relative to revenue over the last four years as its combined ratio increased by 4.8 percentage points
- Flat book value per share over the last five years suggest it must find different ways to enhance shareholder value during this cycle
At $209 per share, Allstate trades at 2.4x forward P/B. Check out our free in-depth research report to learn more about why ALL doesn’t pass our bar.
One Stock to Buy:
Nextracker (NXT)
One-Month Return: +11.8%
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextracker (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Are We Bullish on NXT?
- Average backlog growth of 41.6% over the past two years shows it has a steady sales pipeline that will drive future orders
- Free cash flow margin grew by 13.6 percentage points over the last five years, giving the company more chips to play with
- Improving returns on capital reflect management’s ability to monetize investments
Nextracker’s stock price of $78 implies a valuation ratio of 20.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 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 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.