1 Momentum Stock with Solid Fundamentals and 2 We Find Risky

Jul 28, 2026
1-momentum-stock-with-solid-fundamentals-and-2-we-find-risky

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. All that said, here is one stock with the fundamentals to back up its performance and two not so much.

Two Stocks to Sell:

SouthState (SSB)

One-Month Return: +5.2%

With roots dating back to the Great Depression era of 1933, SouthState (NYSE:SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.

Why Do We Think Twice About SSB?

  1. Estimated net interest income growth of 3.3% for the next 12 months implies demand will slow from its five-year trend
  2. Overall productivity is expected to decrease over the next year as Wall Street thinks its efficiency ratio will degrade by 2.6 percentage points
  3. Incremental sales over the last five years were less profitable as its 6.5% annual earnings per share growth lagged its revenue gains

SouthState is trading at $105.14 per share, or 1x forward P/B. Dive into our free research report to see why there are better opportunities than SSB.

FB Financial (FBK)

One-Month Return: +6.9%

Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE:FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.

Why Are We Cautious About FBK?

  1. Sales trends were unexciting over the last five years as its 2.6% annual growth was below the typical banking company
  2. Estimated net interest income growth of 5% for the next 12 months implies demand will slow from its five-year trend
  3. Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable

At $58.90 per share, FB Financial trades at 1.5x forward P/B. If you’re considering FBK for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Teledyne (TDY)

One-Month Return: +3.1%

Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE:TDY) offers digital imaging and instrumentation products for various industries.

Why Could TDY Be a Winner?

  1. Annual revenue growth of 12.8% over the past five years was outstanding, reflecting market share gains this cycle
  2. Healthy operating margin of 17.9% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
  3. Free cash flow margin expanded by 11.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Teledyne’s stock price of $660.93 implies a valuation ratio of 25.8x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

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