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

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.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. On that note, here is one stock with lasting competitive advantages and two best left ignored.

Two Stocks to Sell:

Brighthouse Financial (BHF)

One-Month Return: -1.1%

Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial (NASDAQ:BHF) provides annuity contracts and life insurance products designed to help individuals protect wealth, generate income, and transfer assets.

Why Do We Pass on BHF?

1. 1.4% annual declines in net premiums earned for the past five years indicates policy sales struggled this cycle
2. Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 11.1% annually over the last five years
3. High debt-to-equity ratio of 1.3× shows the firm carries too much debt relative to shareholder equity, increasing bankruptcy risk

Brighthouse Financial’s stock price of $64.18 implies a valuation ratio of 0.8x forward P/B. Check out our free in-depth research report to learn more about why BHF doesn’t pass our bar.

Hilltop Holdings (HTH)

One-Month Return: +6.5%

Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings (NYSE:HTH) is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.

Why Is HTH Risky?

1. Net interest income was flat over the last five years, indicating it’s failed to expand this cycle
2. Projected 32.9 percentage point efficiency ratio increase over the next year signals its day-to-day expenses will rise
3. Sales were less profitable over the last five years as its earnings per share fell by 13.1% annually, worse than its revenue declines

At $36.85 per share, Hilltop Holdings trades at 1x forward P/B. To fully understand why you should be careful with HTH, check out our full research report (it’s free).

One Stock to Watch:

Globus Medical (GMED)

One-Month Return: +6%

With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE:GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.

Why Do We Like GMED?

1. Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
2. Forecasted revenue growth of 12.6% for the next 12 months indicates its momentum over the last two years is sustainable
3. Earnings per share have massively outperformed its peers over the last five years, increasing by 21.6% annually

Globus Medical is trading at $94.75 per share, or 22.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.