1 Momentum Industrials Stock for Long-Term Investors 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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here is one stock with the fundamentals to back up its performance and two not so much.

Two Industrials Stocks to Sell:

A. O. Smith (AOS)

One-Month Return: +6.9%

Credited with the invention of the glass-lined water heater, A.O. Smith (NYSE:AOS) manufactures water heating and treatment products for various industries.

Why Is AOS Not Exciting?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 1.3% annually
3. Waning returns on capital imply its previous profit engines are losing steam

At $72.45 per share, A. O. Smith trades at 18.2x forward P/E. Dive into our free research report to see why there are better opportunities than AOS.

Winnebago (WGO)

One-Month Return: +11.4%

Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE:WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.

Why Do We Avoid WGO?

1. Sales tumbled by 6.7% annually over the last two years, showing market trends are working against its favor during this cycle
2. Earnings per share fell by 10.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Winnebago’s stock price of $46.61 implies a valuation ratio of 19x forward P/E. Check out our free in-depth research report to learn more about why WGO doesn’t pass our bar.

One Industrials Stock to Buy:

Bloom Energy (BE)

One-Month Return: +59.7%

Working in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.

Why Is BE a Top Pick?

1. Annual revenue growth of 19.1% over the last five years was superb and indicates its market share increased during this cycle
2. Free cash flow profile has moved into positive territory over the last five years, showing the company is at an important crossroads
3. Improving returns on capital suggest its past investments are beginning to deliver value

Bloom Energy is trading at $144.05 per share, or 168.9x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

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