1 Momentum Stock with Competitive Advantages and 2 We Find Risky

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. All that said, here is one stock we think lives up to the hype and two that may correct.

Two Stocks to Sell:

Dole (DOLE)

One-Month Return: +12.3%

Known for its delicious pineapples and Hawaiian roots, Dole (NYSE:DOLE) is a global agricultural company specializing in fresh fruits and vegetables.

Why Do We Steer Clear of DOLE?

1. Sales were flat over the last three years, indicating it’s failed to expand its business
2. Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 8.2%
3. Subpar operating margin of 2.7% constrains its ability to invest in process improvements or effectively respond to new competitive threats

Dole’s stock price of $15.37 implies a valuation ratio of 11x forward P/E. Read our free research report to see why you should think twice about including DOLE in your portfolio.

L.B. Foster (FSTR)

One-Month Return: +8.7%

Founded with a $2,500 loan, L.B. Foster (NASDAQ:FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.

Why Is FSTR Not Exciting?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. Performance over the past five years was negatively impacted by new share issuances as its earnings per share fell by 31.4% annually while its revenue was flat
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

At $28.96 per share, L.B. Foster trades at 8.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why FSTR doesn’t pass our bar.

One Stock to Watch:

Capital One (COF)

One-Month Return: +19.6%

Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE:COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.

Why Does COF Stand Out?

1. Annual revenue growth of 15.2% over the last two years was superb and indicates its market share increased during this cycle
2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 44.9% annually, topping its revenue gains
3. ROE of 10.9% shows management can invest its resources competently

Capital One is trading at $242.08 per share, or 12.1x forward P/E. 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

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 6 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-small-cap company Exlservice (+354% 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.