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. On that note, here are two stocks with lasting competitive advantages and one best left ignored.
One stock to sell:
Surgery Partners (SGRY)
One-month return: +61.1%
With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ:SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.
Why Do We Think Twice About SGRY?
- Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Sales are projected to tank by 14.3% over the next 12 months as demand evaporates
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital on unfavorable terms if market conditions deteriorate
At $23.21 per share, Surgery Partners trades at 97.5x forward P/E. Read our free research report to see why you should think twice about including SGRY in your portfolio.
Two stocks to watch:
SentinelOne (S)
One-month return: +2.7%
Built on the principle of “fighting machine with machine,” SentinelOne (NYSE:S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.
Why Are We Positive on S?
- ARR growth averaged 22.2% over the last year, showing customers are willing to take multi-year bets on its software
- Forecasted revenue growth of 19.2% for the next 12 months indicates its momentum over the last two years is sustainable
- Free cash flow margin is anticipated to expand by 9.4 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends
SentinelOne is trading at $23.94 per share, or 6.7x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Abercrombie and Fitch (ANF)
One-month return: +20.7%
Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE:ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.
Why Should You Buy ANF?
- Same-store sales growth averaged 5% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Differentiated product assortment results in a best-in-class gross margin of 63.2%
- Share buybacks catapulted its annual earnings per share growth to 76.3%, which outperformed its revenue gains over the last three years
Abercrombie and Fitch’s stock price of $161.25 implies a valuation ratio of 13.2x forward P/E. Is now the right time to buy? 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 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 (+1,460% 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.
