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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. On that note, here are two stocks we think live up to the hype and one not so much.
One Stock to Sell:
Trimble (TRMB)
One-Month Return: +6.4%
Playing a role in the construction of the Paris Grand, Trimble (NASDAQ: TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.
Why Is TRMB Risky?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Sales are projected to tank by 2.5% over the next 12 months as demand evaporates further
- 9.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Trimble is trading at $75.82 per share, or 25.3x forward P/E. Check out our free in-depth research report to learn more about why TRMB doesn’t pass our bar.
Two Stocks to Watch:
KLA Corporation (KLAC)
One-Month Return: +17.4%
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ: KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
Why Are We Backing KLAC?
- Annual revenue growth of 15.6% over the last five years was superb and indicates its market share increased during this cycle
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 35.9%, and it turbocharged its profits by achieving some fixed cost leverage
- Strong free cash flow margin of 31.2% enables it to reinvest or return capital consistently
KLA Corporation’s stock price of $888.69 implies a valuation ratio of 28.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
BancFirst (BANF)
One-Month Return: +1.1%
Operating as a "super community bank" with a decentralized management approach that emphasizes local responsiveness, BancFirst Corporation (NASDAQ: BANF) operates as a financial holding company providing commercial banking services to retail customers and small to medium-sized businesses primarily in Oklahoma and Texas.
Why Do We Watch BANF?
- Solid 10.2% annual net interest income growth over the last four years indicates its offerings are gaining share
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 11.5% over the last five years outstripped its revenue performance
- Impressive 11.3% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
At $125.01 per share, BancFirst trades at 2.3x forward P/B. 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
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
