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. Keeping that in mind, here is one stock with lasting competitive advantages and two that may correct.
Two Stocks to Sell:
Acushnet (GOLF)
One-Month Return: +12.8%
Producer of the acclaimed Titleist Pro V1 golf ball, Acushnet (NYSE: GOLF) is a design and manufacturing company specializing in performance-driven golf products.
Why Is GOLF Risky?
- Lackluster 9.7% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $100.73 per share, Acushnet trades at 24.7x forward P/E. Dive into our free research report to see why there are better opportunities than GOLF.
Customers Bancorp (CUBI)
One-Month Return: +16.6%
Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.
Why Does CUBI Fall Short?
- Sales trends were unexciting over the last two years as its 6.8% annual growth was below the typical banking company
- Net interest margin of 3.2% is well below other banks, signaling its loans aren’t very profitable
- Performance over the past two years shows its incremental sales were less profitable as its earnings per share were flat
Customers Bancorp is trading at $77.21 per share, or 1.1x forward P/B. Read our free research report to see why you should think twice about including CUBI in your portfolio.
One Stock to Buy:
KLA Corporation (KLAC)
One-Month Return: +18.6%
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 Will KLAC Beat the Market?
- Market share has increased this cycle as its 16% annual revenue growth over the last five years was exceptional
- Superior product capabilities and pricing power are reflected in its best-in-class gross margin of 60.7%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
KLA Corporation’s stock price of $1,778 implies a valuation ratio of 41x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
