1 Momentum Stock to Own for Decades and 2 We Turn Down

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.

But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here is one stock we think lives up to the hype and two best left ignored.

Two Stocks to Sell:

Soho House (SHCO)

One-Month Return: +21.9%

Boasting fancy locations in hubs such as NYC and Miami, Soho House (NYSE:SHCO) is a global hospitality brand offering exclusive private member clubs, hotels, and restaurants.

Why Are We Wary of SHCO?

1. Number of members has disappointed over the past two years, indicating weak demand for its offerings
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Soho House’s stock price of $8.86 implies a valuation ratio of 9.7x forward EV-to-EBITDA. If you’re considering SHCO for your portfolio, see our FREE research report to learn more.

Enterprise Financial Services (EFSC)

One-Month Return: +11.9%

Starting as a single bank in Missouri in 1988 and expanding through strategic growth, Enterprise Financial Services (NASDAQ:EFSC) is a financial holding company that offers banking, lending, and wealth management services to businesses and individuals across seven states.

Why Does EFSC Fall Short?

1. Estimated net interest income growth of 4.2% for the next 12 months implies demand will slow from its five-year trend
2. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 25.7 basis points (100 basis points = 1 percentage point)
3. Efficiency ratio is expected to worsen by 1.1 percentage points over the next year

At $61.22 per share, Enterprise Financial Services trades at 1.2x forward P/B. To fully understand why you should be careful with EFSC, check out our full research report (it’s free).

One Stock to Buy:

Blue Bird (BLBD)

One-Month Return: +7.9%

With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.

Why Will BLBD Beat the Market?

1. Annual revenue growth of 14.3% over the last two years was superb and indicates its market share increased during this cycle
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 317% annually, topping its revenue gains
3. Improving returns on capital reflect management’s ability to monetize investments

Blue Bird is trading at $59 per share, or 14.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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 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-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.