1 Mooning Stock to Own for Decades and 2 We Question

The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.

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 lasting competitive advantages and two not so much.

Two Stocks to Sell:

Entegris (ENTG)

One-Month Return: +38%

With fabs representing the company’s largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Why Do We Steer Clear of ENTG?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.1% annually over the last two years
2. Estimated sales growth of 2.5% for the next 12 months is soft and implies weaker demand
3. Low free cash flow margin of 9.3% declined over the last five years as its investments ramped, giving it little breathing room

Entegris’s stock price of $117.45 implies a valuation ratio of 40.4x forward P/E. If you’re considering ENTG for your portfolio, see our FREE research report to learn more.

Thermo Fisher (TMO)

One-Month Return: +7.6%

With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific (NYSE:TMO) provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide.

Why Do We Think Twice About TMO?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
3. Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 9.2 percentage points

Thermo Fisher is trading at $619.43 per share, or 25.7x forward P/E. Read our free research report to see why you should think twice about including TMO in your portfolio.

One Stock to Buy:

Powell (POWL)

One-Month Return: +25%

Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE:POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.

Why Are We Bullish on POWL?

1. Annual revenue growth of 25.7% over the past two years was outstanding, reflecting market share gains this cycle
2. Additional sales over the last two years increased its profitability as the 86.5% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin jumped by 21.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $420.70 per share, Powell trades at 27.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Check out the high-quality names we’ve flagged 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.