2 Surging Stocks for Long-Term Investors and 1 That Underwhelm

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. On that note, here are two stocks we think live up to the hype and one not so much.

One Stock to Sell:

Semrush (SEMR)

One-Month Return: +0.8%

Born from the need to make sense of the complex digital marketing landscape, Semrush (NYSE:SEMR) is a software-as-a-service platform that helps companies improve their online visibility, analyze digital marketing efforts, and optimize content across search engines and social media.

Why Does SEMR Fall Short?

1. Customers generally do not adopt complementary products as its 106% net revenue retention rate lags behind the industry standard
2. Operating margin dropped by 4.3 percentage points over the last year as the company focused on expansion rather than profitability
3. Low free cash flow margin of 9.7% for the last year gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Semrush’s stock price of $11.94 implies a valuation ratio of 3.6x forward price-to-sales. To fully understand why you should be careful with SEMR, check out our full research report (it’s free).

Two Stocks to Watch:

Burlington (BURL)

One-Month Return: -1%

Founded in 1972 as a discount coat and outerwear retailer, Burlington Stores (NYSE:BURL) is now an off-price retailer that has broadened into general apparel, footwear, and home goods.

Why Does BURL Stand Out?

1. Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
2. Comparable store sales rose by 3% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
3. Notable projected revenue growth of 9.6% for the next 12 months hints at market share gains

At $301.59 per share, Burlington trades at 26.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

GE Aerospace (GE)

One-Month Return: +1.6%

One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

Why Will GE Beat the Market?

1. Annual revenue growth of 15.1% over the past two years was outstanding, reflecting market share gains this cycle
2. Share buybacks catapulted its annual earnings per share growth to 50.9%, which outperformed its revenue gains over the last two years
3. Robust free cash flow margin of 16.3% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business

GE Aerospace is trading at $321.32 per share, or 43.6x 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

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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.