The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. On that note, here is one stock with lasting competitive advantages and two that may correct.

Two Stocks to Sell:

Hasbro (HAS)

One-Month Return: +1.8%

Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.

Why Are We Out on HAS?

1. Sales tumbled by 3.1% annually over the last five years, showing consumer trends are working against its favor
2. Persistent operating margin losses suggest the business manages its expenses poorly
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Hasbro’s stock price of $78.95 implies a valuation ratio of 17.2x forward P/E. If you’re considering HAS for your portfolio, see our FREE research report to learn more.

Radian Group (RDN)

One-Month Return: +1.9%

Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE: RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership.

Why Does RDN Fall Short?

1. Insurance offerings face significant market challenges this cycle as net premiums earned contracted by 3% annually over the last five years
2. Costs have risen faster than its revenue over the last two years, causing its combined ratio to worsen by 23.4 percentage points
3. Incremental sales over the last two years were much less profitable as its earnings per share fell by 1.5% annually while its revenue grew

At $34.83 per share, Radian Group trades at 1x forward P/B. Dive into our free research report to see why there are better opportunities than RDN.

One Stock to Watch:

Xylem (XYL)

One-Month Return: -4.3%

Formed through a spinoff, Xylem (NYSE: XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector.

Why Do We Like XYL?

1. Market share has increased this cycle as its 20.1% annual revenue growth over the last two years was exceptional
2. Offerings are mission-critical for businesses and lead to a stellar gross margin of 37.6%
3. Earnings per share grew by 15.9% annually over the last two years, massively outpacing its peers

Xylem is trading at $136.77 per share, or 28.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound 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-micro-cap company Kadant (+351% 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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