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.
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 is one stock with the fundamentals to back up its performance and two that may correct.
Two Stocks to Sell:
VSE Corporation (VSEC)
One-Month Return: -5.8%
With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ: VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.
Why Is VSEC Not Exciting?
- Gross margin of 13.9% reflects its high production costs
- Cash-burning history makes us doubt the long-term viability of its business model
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
VSE Corporation’s stock price of $131.16 implies a valuation ratio of 36.5x forward P/E. Read our free research report to see why you should think twice about including VSEC in your portfolio.
U.S. Cellular (USM)
One-Month Return: +11.3%
Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, US Cellular (NYSE: USM) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services.
Why Should You Sell USM?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.6% annually over the last five years
- Adjusted operating margin declined by 5.6 percentage points over the last five years as its sales cratered
- Earnings per share have dipped by 18% annually over the past five years, which is concerning because stock prices follow EPS over the long term
U.S. Cellular is trading at $70.48 per share, or 6.3x forward EV-to-EBITDA. If you’re considering USM for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Stryker (SYK)
One-Month Return: +3.5%
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Do We Watch SYK?
- Core business can prosper without any help from acquisitions as its organic revenue growth averaged 10.4% over the past two years
- Revenue base of $23.22 billion gives it economies of scale and some negotiating power
- Free cash flow margin of 14.6% is higher than many in the industry, giving it breathing room and optionality
At $400.12 per share, Stryker trades at 29x 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
Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 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 Comfort Systems (+782% 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
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