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. All that said, here is one stock with the fundamentals to back up its performance and two that may correct.
Two Stocks to Sell:
Service International (SCI)
One-Month Return: +3.8%
Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.
Why Should You Dump SCI?
- Performance surrounding its funeral services performed has lagged its peers
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 14.3% for the last two years
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Service International’s stock price of $80.92 implies a valuation ratio of 19.6x forward P/E. If you’re considering SCI for your portfolio, see our FREE research report to learn more.
TFS Financial (TFSL)
One-Month Return: +1.2%
Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial (NASDAQ: TFSL) is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.
Why Do We Think TFSL Will Underperform?
- Annual net interest income growth of 3.9% over the last five years was below our standards for the banking sector
- Inferior net interest margin of 1.7% means it must compensate for lower profitability through increased loan originations
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 2% annually
At $14.16 per share, TFS Financial trades at 2.1x forward P/B. Check out our free in-depth research report to learn more about why TFSL doesn’t pass our bar.
One Stock to Buy:
FTAI Aviation (FTAI)
One-Month Return: +67.5%
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.
Why Will FTAI Beat the Market?
- Market share has increased this cycle as its 43.9% annual revenue growth over the last two years was exceptional
- Additional sales over the last two years increased its profitability as the 82.4% annual growth in its earnings per share outpaced its revenue
- Negative free cash flow margin has improved over the last five years, showing the company is one step closer to financial self-sufficiency
FTAI Aviation is trading at $291.78 per share, or 48.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.
