1 Mooning Stock on Our Buy List and 2 to Be Wary Of

Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here is one stock we think lives up to the hype and two not so much.

Two Stocks to Sell:

Commvault Systems (CVLT)

One-Month Return: +8.6%

Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance.

Why Do We Think Twice About CVLT?

1. Sales trends were unexciting over the last three years as its 9% annual growth was well below the typical software company
2. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 1.6 percentage points

At $189 per share, Commvault Systems trades at 7.5x forward price-to-sales. If you’re considering CVLT for your portfolio, see our FREE research report to learn more.

Premier (PINC)

One-Month Return: +11.5%

Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ:PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes.

Why Do We Pass on PINC?

1. Sales tumbled by 9.3% annually over the last two years, showing market trends are working against its favor during this cycle
2. Sales are projected to tank by 10.6% over the next 12 months as its demand continues evaporating
3. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term

Premier’s stock price of $22.86 implies a valuation ratio of 17x forward P/E. Read our free research report to see why you should think twice about including PINC in your portfolio.

One Stock to Buy:

Palantir (PLTR)

One-Month Return: +6.4%

Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE:PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions.

Why Is PLTR a Good Business?

1. Average billings growth of 38.6% over the last year enhances its liquidity and shows there is steady demand for its products
2. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
3. Strong free cash flow margin of 47.2% enables it to reinvest or return capital consistently

Palantir is trading at $131.63 per share, or 81.2x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.