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.
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 best left ignored.
Two Stocks to Sell:
Bristol-Myers Squibb (BMY)
One-Month Return: +5.4%
With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE: BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.
Why Do We Think Twice About BMY?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.1% over the last five years was below our standards for the healthcare sector
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 8.2 percentage points
- Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
Bristol-Myers Squibb is trading at $63.99 per share, or 10.1x forward P/E. To fully understand why you should be careful with BMY, check out our full research report (it’s free).
Cathay General Bancorp (CATY)
One-Month Return: +3.5%
Founded in 1962 with its first branch in Los Angeles' Chinatown, Cathay General Bancorp (NASDAQ: CATY) operates Cathay Bank, providing commercial banking services to businesses and individuals with a strong presence in Asian-American communities.
Why Is CATY Not Exciting?
- Annual net interest income growth of 6.6% over the last five years was below our standards for the banking sector
- Earnings per share lagged its peers over the last two years as they only grew by 7.5% annually
- Anticipated tangible book value per share growth of 10% for the next year implies profitability will be modest
At $64.93 per share, Cathay General Bancorp trades at 1.4x forward P/B. Read our free research report to see why you should think twice about including CATY in your portfolio.
One Stock to Buy:
Brady (BRC)
One-Month Return: +0.5%
Founded in 1914 and evolving through more than a century of industrial innovation, Brady (NYSE: BRC) manufactures and supplies identification solutions and workplace safety products that help companies identify and protect their premises, products, and people.
Why Will BRC Outperform?
- Impressive 9.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Exciting sales outlook for the upcoming 12 months calls for 38.2% growth, an acceleration from its two-year trend
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Brady’s stock price of $94.20 implies a valuation ratio of 16x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
