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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here are two stocks we think live up to the hype and one best left ignored.
One Stock to Sell:
Planet Fitness (PLNT)
One-Month Return: -0.6%
Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE: PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.
Why Do We Think PLNT Will Underperform?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
- Free cash flow margin is expected to increase by 1.6 percentage points next year, suggesting the company will have more capital to invest or return to shareholders
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $110.46 per share, Planet Fitness trades at 32.1x forward P/E. If you’re considering PLNT for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
GE Aerospace (GE)
One-Month Return: +13.2%
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
Why Will GE Beat the Market?
- Impressive 14.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Robust free cash flow margin of 17.6% gives it many options for capital deployment
GE Aerospace is trading at $321.28 per share, or 45.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
German American Bancorp (GABC)
One-Month Return: -1.9%
Founded in 1910 during a wave of community banking expansion in the Midwest, German American Bancorp (NASDAQ: GABC) is a financial holding company that provides banking, wealth management, and insurance services across southern Indiana and Kentucky.
Why Are We Positive On GABC?
- Net interest margin jumped by 35 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more resources to pursue growth initiatives
- Operating profits are forecasted to increase over the next year as it scales and becomes more productive
- Impressive 26.1% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle
German American Bancorp’s stock price of $38.88 implies a valuation ratio of 1.3x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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).
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