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 the fundamentals to back up its performance and two best left ignored.

Two Stocks to Sell:

GATX (GATX)

One-Month Return: +10.3%

Originally founded to ship beer, GATX (NYSE: GATX) provides leasing and management services for railcars and other transportation assets globally.

Why Does GATX Fall Short?

1. Demand for its offerings was relatively low as its number of active railcars has underwhelmed
2. Negative free cash flow raises questions about the return timeline for its investments
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

GATX’s stock price of $170.08 implies a valuation ratio of 18.5x forward P/E. Read our free research report to see why you should think twice about including GATX in your portfolio.

Installed Building Products (IBP)

One-Month Return: +27.6%

Founded in 1977, Installed Building Products (NYSE: IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction.

Why Are We Wary of IBP?

1. 3.5% annual revenue growth over the last two years was slower than its industrials peers
2. Projected sales decline of 3.1% for the next 12 months points to a tough demand environment ahead
3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5.3% annually

Installed Building Products is trading at $263.39 per share, or 26.4x forward P/E. If you’re considering IBP for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Boston Scientific (BSX)

One-Month Return: -0.7%

Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.

Why Is BSX on Our Radar?

1. Core business can prosper without any help from acquisitions as its organic revenue growth averaged 15.6% over the past two years
2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
3. Additional sales over the last five years increased its profitability as the 18.4% annual growth in its earnings per share outpaced its revenue

At $105.75 per share, Boston Scientific trades at 34.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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