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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here is one stock with lasting competitive advantages and two that may correct.
Two Stocks to Sell:
Diebold Nixdorf (DBD)
One-Month Return: +1.5%
With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE: DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.
Why Are We Wary of DBD?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.3% annually over the last five years
- Cash-burning history makes us doubt the long-term viability of its business model
- Negative returns on capital show management lost money while trying to expand the business
At $66.58 per share, Diebold Nixdorf trades at 14.1x forward P/E. Dive into our free research report to see why there are better opportunities than DBD.
BNY (BK)
One-Month Return: +3.6%
Tracing its roots back to 1784 when it was founded by Alexander Hamilton, BNY (NYSE: BK) is a global financial institution that provides asset servicing, wealth management, and investment services to institutions, corporations, and high-net-worth individuals.
Why Do We Think Twice About BK?
- Annual sales growth of 4.2% over the last five years lagged behind its financials peers as its large revenue base made it difficult to generate incremental demand
- Large asset base makes it harder to grow tangible book value per share quickly, and its annual tangible book value per share growth of 3.2% over the last five years was below our standards for the financials sector
- Low return on equity reflects management’s struggle to allocate funds effectively
BNY is trading at $116.10 per share, or 14.5x forward P/E. Check out our free in-depth research report to learn more about why BK doesn’t pass our bar.
One Stock to Watch:
CarGurus (CARG)
One-Month Return: +8%
Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ: CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
Why Does CARG Stand Out?
- Monetization efforts are paying off as its average revenue per user has grown by 11.3% annually over the last two years
- Healthy EBITDA margin of 29.2% shows it’s a well-run company with efficient processes, and its efficiency improved over the last few years as its margin expanded
- Free cash flow margin jumped by 20.9 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
CarGurus’s stock price of $38.35 implies a valuation ratio of 11.3x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
