1 Mooning Stock on Our Watchlist and 2 Facing Headwinds

Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.

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 with the fundamentals to back up its performance and two that may correct.

Two Stocks to Sell:

Hologic (HOLX)

One-Month Return: +0.9%

As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ:HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness.

Why Do We Think Twice About HOLX?

1. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
2. Free cash flow margin dropped by 20.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Waning returns on capital imply its previous profit engines are losing steam

At $74.96 per share, Hologic trades at 16.4x forward P/E. If you’re considering HOLX for your portfolio, see our FREE research report to learn more.

CNO Financial Group (CNO)

One-Month Return: -1.8%

Rebranded from Conseco in 2010 to signal a fresh start after navigating financial challenges, CNO Financial Group (NYSE:CNO) develops and markets health insurance, annuities, and life insurance products primarily targeting middle-income pre-retirees and retirees.

Why Are We Cautious About CNO?

1. Net premiums earned plateaued over the last five years, signaling weak incremental demand for its insurance policies
2. Estimated sales growth of 3.8% for the next 12 months is soft and implies weaker demand
3. Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 5.7% annually over the last five years

CNO Financial Group is trading at $40.18 per share, or 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than CNO.

One Stock to Watch:

Travelers (TRV)

One-Month Return: -0.5%

Tracing its roots back to 1853 when it insured travelers against accidents on steamboats and railroads, Travelers (NYSE:TRV) provides a wide range of commercial and personal property and casualty insurance products to businesses, government units, associations, and individuals.

Why Do We Like TRV?

1. Net premiums earned expanded by 9.2% annually over the last two years, outperforming the sector average and highlighting the appeal of its insurance products
2. Annual book value per share growth of 27.3% over the last two years was superb and indicates its capital strength increased during this cycle
3. Capital strength will likely rise over the next 12 months as its expected book value per share growth of 21% is robust

Travelers’s stock price of $280.89 implies a valuation ratio of 1.9x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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

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