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.
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 are two stocks with the fundamentals to back up their performance and one that may correct.
One Stock to Sell:
EnerSys (ENS)
One-Month Return: +19.9%
Supplying batteries that power equipment as big as mining rigs, EnerSys (NYSE:ENS) manufactures various kinds of batteries for a range of industries.
Why Are We Cautious About ENS?
- Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Estimated sales growth of 1.6% for the next 12 months is soft and implies weaker demand
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 26.1%
At $138.50 per share, EnerSys trades at 12.6x forward P/E. To fully understand why you should be careful with ENS, check out our full research report (it’s free for active Edge members).
Two Stocks to Watch:
Advanced Drainage (WMS)
One-Month Return: +9.2%
Originally started as a farm water drainage company, Advanced Drainage Systems (NYSE:WMS) provides clean water management solutions to communities across America.
Why Could WMS Be a Winner?
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 21.5%, and its rise over the last five years was fueled by some leverage on its fixed costs
- Free cash flow margin grew by 11.3 percentage points over the last five years, giving the company more chips to play with
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are climbing as it finds even more attractive growth opportunities
Advanced Drainage’s stock price of $147.85 implies a valuation ratio of 24.2x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Medpace (MEDP)
One-Month Return: +14.3%
Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ:MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.
Why Should You Buy MEDP?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 15.1% over the past two years
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 47.9% return on capital demonstrates management’s skill in finding high-return investments
Medpace is trading at $602.77 per share, or 38.2x 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
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
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 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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