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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here is one stock we think lives up to the hype and two that may correct.
Two Stocks to Sell:
Knowles (KN)
One-Month Return: +3.4%
With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE:KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications.
Why Do We Think KN Will Underperform?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.2% annually over the last five years
- Smaller revenue base of $614.1 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Earnings per share lagged its peers over the last five years as they only grew by 5.2% annually
At $37.49 per share, Knowles trades at 28x forward P/E. Check out our free in-depth research report to learn more about why KN doesn’t pass our bar.
NBT Bancorp (NBTB)
One-Month Return: +5.3%
Tracing its roots back to 1856 when it first opened its doors in Norwich, New York, NBT Bancorp (NASDAQ:NBTB) is a community-oriented financial institution providing banking, wealth management, and insurance services to individuals and businesses across the northeastern United States.
Why Does NBTB Give Us Pause?
- Muted 9.4% annual revenue growth over the last five years shows its demand lagged behind its banking peers
- Performance over the past five years shows its incremental sales were less profitable, as its 4.8% annual earnings per share growth trailed its revenue gains
- Projected tangible book value per share growth of 11.1% for the next 12 months suggests sluggish capital generation
NBT Bancorp’s stock price of $47.20 implies a valuation ratio of 1.2x forward P/B. To fully understand why you should be careful with NBTB, check out our full research report (it’s free).
One Stock to Buy:
Wabtec (WAB)
One-Month Return: -0.9%
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry.
Why Is WAB a Good Business?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 9.1% annual sales growth over the last five years
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Wabtec is trading at $265.77 per share, or 24.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.
