1 Surging Stock to Own for Decades and 2 We Question

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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here is one stock we think lives up to the hype and two not so much.

Two Stocks to Sell:

Warner Bros. Discovery (WBD)

One-Month Return: +62.4%

Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ:WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.

Why Are We Out on WBD?

1. Products and services have few die-hard fans as sales have declined by 4.2% annually over the last two years
2. Earnings per share fell by 30.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Warner Bros. Discovery is trading at $19.57 per share, or 5.3x forward EV-to-EBITDA. To fully understand why you should be careful with WBD, check out our full research report (it’s free).

C.H. Robinson Worldwide (CHRW)

One-Month Return: +9.9%

Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ:CHRW) offers freight transportation and logistics services.

Why Do We Pass on CHRW?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 8% annually over the last two years
2. Gross margin of 7.3% is below its competitors, leaving less money to invest in areas like marketing and R&D
3. Eroding returns on capital suggest its historical profit centers are aging

C.H. Robinson Worldwide’s stock price of $137.54 implies a valuation ratio of 27.6x forward P/E. Read our free research report to see why you should think twice about including CHRW in your portfolio.

One Stock to Buy:

EMCOR (EME)

One-Month Return: +3.4%

Through its network of over 70 subsidiaries, EMCOR (NYSE:EME) provides electrical, mechanical, and building construction and services

Why Should You Buy EME?

1. Annual revenue growth of 15.6% over the last two years was superb and indicates its market share increased during this cycle
2. Share buybacks catapulted its annual earnings per share growth to 54.8%, which outperformed its revenue gains over the last two years
3. Returns on capital are climbing as management makes more lucrative bets

At $631 per share, EMCOR trades at 26.2x 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 5 Growth Stocks for this month. 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 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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