The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here is one stock we think lives up to the hype and two that may correct.
Two Stocks to Sell:
Electronic Arts (EA)
One-Month Return: -1.3%
Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ:EA) is one of the world’s largest video game publishers.
Why Are We Hesitant About EA?
- Muted 3% annual revenue growth over the last three years shows its demand lagged behind its consumer internet peers
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3%
- Efficiency has decreased over the last few years as its EBITDA margin fell by 3.2 percentage points
Electronic Arts’s stock price of $200.01 implies a valuation ratio of 16.9x forward EV/EBITDA. Check out our free in-depth research report to learn more about why EA doesn’t pass our bar.
American Express Global Business Travel (GBTG)
One-Month Return: +65%
Originally spun off from American Express in 2014 but maintaining the Amex GBT brand, Global Business Travel Group (NYSE:GBTG) provides end-to-end business travel and expense management solutions, connecting corporate clients with travel suppliers and offering specialized software services.
Why Is GBTG Not Exciting?
- Revenue increased by 12.5% annually over the last two years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
- Gross margin of 59% is way below its competitors, leaving less money to invest in areas like marketing and R&D
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 2.2 percentage points
At $9.39 per share, American Express Global Business Travel trades at 1.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than GBTG.
One Stock to Buy:
EMCOR (EME)
One-Month Return: +13.7%
Through its network of over 70 subsidiaries, EMCOR (NYSE:EME) provides electrical, mechanical, and building construction and services
Why Will EME Beat the Market?
- Annual revenue growth of 16.3% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Returns on capital are climbing as management makes more lucrative bets
EMCOR is trading at $923.75 per share, or 31.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging for this month – FREE. Get Our Top 5 Growth 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
