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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. On that note, here are two stocks with the fundamentals to back up their performance and one that may correct.
One stock to sell:
Cathay General Bancorp (CATY)
One-month return: +6.6%
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 Are We Wary of CATY?
- 6.9% annual revenue growth over the last five years was slower than its banking peers
- Annual net interest income growth of 6.6% over the last five years was below our standards for the banking sector
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 7.4% annually
Cathay General Bancorp’s stock price of $64.74 implies a valuation ratio of 1.4x forward P/B. If you’re considering CATY for your portfolio, see our FREE research report to learn more.
Two stocks to watch:
Amalgamated Financial (AMAL)
One-month return: +8.8%
Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.
Why Do We Like AMAL?
- Annual net interest income growth of 13.9% over the last five years beat the sector average and underscores the value of its loans
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 19.8% exceeded its revenue gains over the last five years
- Annual tangible book value per share growth of 9.7% over the past five years was outstanding, reflecting strong capital accumulation this cycle
Amalgamated Financial is trading at $51.43 per share, or 1.8x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free.
Occidental Petroleum (OXY)
One-month return: +11.4%
Backed by Warren Buffett's Berkshire Hathaway as a major shareholder, Occidental Petroleum (NYSE: OXY) explores for, develops, and produces oil, natural gas liquids, and natural gas, primarily in the United States and Middle East.
Why Are We Bullish on OXY?
- Impressive 8.4% annual revenue growth over the last ten years indicates it’s winning market share this cycle
- Enormous revenue base of $24.47 billion provides significant leverage in supplier negotiations
- OXY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $62.49 per share, Occidental Petroleum trades at 10.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-quality stocks for all market conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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.
