1 Momentum Stock to Keep an Eye On and 2 Facing Challenges

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. Keeping that in mind, here is one stock we think lives up to the hype and two not so much.

Two Stocks to Sell:

Boeing (BA)

One-Month Return: +11.3%

One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.

Why Do We Think BA Will Underperform?

1. Underwhelming unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
2. Negative free cash flow raises questions about the return timeline for its investments
3. EBITDA losses may force it to accept punitive lending terms or high-cost debt

Boeing is trading at $229.57 per share, or 290.6x forward P/E. Dive into our free research report to see why there are better opportunities than BA.

Northrop Grumman (NOC)

One-Month Return: +9.8%

Responsible for the development of the first stealth bomber, Northrop Grumman (NYSE:NOC) specializes in providing aerospace, defense, and security solutions for various industry applications.

Why Is NOC Risky?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 5.7 percentage points
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Northrop Grumman’s stock price of $607.95 implies a valuation ratio of 22.2x forward P/E. Read our free research report to see why you should think twice about including NOC in your portfolio.

One Stock to Watch:

Old Second Bancorp (OSBC)

One-Month Return: -0.3%

Dating back to 1871 as one of the Chicago area's longest-standing financial institutions, Old Second Bancorp (NASDAQ:OSBC) is an Illinois-based community bank offering deposit services, commercial and consumer loans, wealth management, and mortgage products through its 53 branch locations.

Why Does OSBC Stand Out?

1. Impressive 24.4% annual net interest income growth over the last five years indicates it’s winning market share this cycle
2. Market share will likely rise over the next 12 months as its expected net interest income growth of 21.2% is robust
3. Differentiated product suite results in a Strong performance of its loan book results in a High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 4.8%

At $19.74 per share, Old Second Bancorp trades at 1.2x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More

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 9 Market-Beating Stocks. 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.