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.
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 with lasting competitive advantages and two best left ignored.
Two Stocks to Sell:
PACCAR (PCAR)
One-Month Return: +8.7%
Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
Why Does PCAR Worry Us?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Earnings per share have contracted by 19.6% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
At $121.91 per share, PACCAR trades at 23.8x forward P/E. Check out our free in-depth research report to learn more about why PCAR doesn’t pass our bar.
Ameris Bancorp (ABCB)
One-Month Return: +4.3%
Tracing its roots back to 1971 and expanding significantly through both organic growth and strategic acquisitions, Ameris Bancorp (NYSE:ABCB) is a financial holding company that provides a full range of banking services to retail and commercial customers across select markets in the southeastern United States.
Why Is ABCB Not Exciting?
- Muted 7.7% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Estimated net interest income growth of 5.5% for the next 12 months implies demand will slow from its five-year trend
- Earnings per share lagged its peers over the last five years as they only grew by 8.6% annually
Ameris Bancorp is trading at $81.15 per share, or 1.3x forward P/B. If you’re considering ABCB for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Woodward (WWD)
One-Month Return: +14.1%
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ:WWD) designs, services, and manufactures energy control products and optimization solutions.
Why Is WWD on Our Radar?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 11.1% over the past two years
- Estimated revenue growth of 11.2% for the next 12 months implies its momentum over the last two years will continue
- Earnings per share have massively outperformed its peers over the last two years, increasing by 38.1% annually
Woodward’s stock price of $335.95 implies a valuation ratio of 40.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our 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 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.