1 Mooning Stock with Exciting Potential and 2 We Ignore

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. Keeping that in mind, here is one stock with the fundamentals to back up its performance and two best left ignored.

Two Stocks to Sell:

FOX (FOXA)

One-Month Return: +5.3%

Founded in 1915, Fox (NASDAQ:FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.

Why Should You Sell FOXA?

1. Sizable revenue base leads to growth challenges as its 4.5% annual revenue increases over the last two years fell short of other consumer discretionary companies
2. Sales are projected to tank by 2.6% over the next 12 months as demand evaporates
3. Projected 4.5 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position

At $60 per share, FOX trades at 14.1x forward P/E. Read our free research report to see why you should think twice about including FOXA in your portfolio.

First Horizon (FHN)

One-Month Return: +3.2%

Tracing its roots back to 1864 during the Civil War era, First Horizon (NYSE:FHN) is a Tennessee-based bank holding company that provides commercial and consumer banking, wealth management, and specialty financial services across multiple states.

Why Are We Wary of FHN?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.3% annually over the last two years
2. Estimated net interest income growth of 3.4% for the next 12 months implies demand will slow from its five-year trend
3. 20.3 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position

First Horizon’s stock price of $22.37 implies a valuation ratio of 1.3x forward P/B. Dive into our free research report to see why there are better opportunities than FHN.

One Stock to Watch:

LegalZoom (LZ)

One-Month Return: +25.8%

Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ:LZ) offers online legal services and documentation assistance for individuals and businesses.

Why Do We Like LZ?

1. Has the opportunity to boost monetization through new features and premium offerings as its subscription units have grown by 11.7% annually over the last two years
2. Share repurchases over the last three years enabled its annual earnings per share growth of 177% to outpace its revenue gains
3. Free cash flow margin expanded by 14.9 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends

LegalZoom is trading at $11.02 per share, or 11.2x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

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-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

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