1 Momentum Stock to Target This Week 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.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here is one stock with the fundamentals to back up its performance and two best left ignored.

Two Stocks to Sell:

Intel (INTC)

One-Month Return: +27.6%

Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ:INTC) is a leading manufacturer of computer processors and graphics chips.

Why Should You Sell INTC?

1. Annual sales declines of 6.4% for the past five years show its products and services struggled to connect with the market during this cycle
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. 35.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $46.99 per share, Intel trades at 113.1x forward P/E. Dive into our free research report to see why there are better opportunities than INTC.

Great Lakes Dredge & Dock (GLDD)

One-Month Return: +12.7%

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Why Does GLDD Worry Us?

1. Average backlog growth of 4.2% over the past two years was mediocre and suggests fewer customers signed long-term contracts
2. Gross margin of 16.9% reflects its high production costs
3. Cash burn makes us question whether it can achieve sustainable long-term growth

Great Lakes Dredge & Dock’s stock price of $15.22 implies a valuation ratio of 16.4x forward P/E. Read our free research report to see why you should think twice about including GLDD in your portfolio.

One Stock to Buy:

Nova (NVMI)

One-Month Return: +38%

Headquartered in Israel, Nova (NASDAQ:NVMI) is a provider of quality control systems used in semiconductor manufacturing.

Why Will NVMI Outperform?

1. Market share has increased this cycle as its 26.3% annual revenue growth over the last two years was exceptional
2. Earnings growth has trumped its peers over the last five years as its EPS has compounded at 33.1% annually
3. Strong free cash flow margin of 28% enables it to reinvest or return capital consistently

Nova is trading at $445.65 per share, or 48.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.