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 we think lives up to the hype and two that may correct.
Two Stocks to Sell:
Dole (DOLE)
One-Month Return: +12.3%
Known for its delicious pineapples and Hawaiian roots, Dole (NYSE: DOLE) is a global agricultural company specializing in fresh fruits and vegetables.
Why Do We Steer Clear of DOLE?
- Sales were flat over the last three years, indicating it’s failed to expand its business
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 8.2%
- Subpar operating margin of 2.7% constrains its ability to invest in process improvements or effectively respond to new competitive threats
Dole’s stock price of $15.37 implies a valuation ratio of 11x forward P/E. Read our free research report to see why you should think twice about including DOLE in your portfolio.
L.B. Foster (FSTR)
One-Month Return: +8.7%
Founded with a $2,500 loan, L.B. Foster (NASDAQ: FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.
Why Is FSTR Not Exciting?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Performance over the past five years was negatively impacted by new share issuances as its earnings per share fell by 31.4% annually while its revenue was flat
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $28.96 per share, L.B. Foster trades at 8.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why FSTR doesn’t pass our bar.
One Stock to Watch:
Capital One (COF)
One-Month Return: +19.6%
Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE: COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.
Why Does COF Stand Out?
- Annual revenue growth of 15.2% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 44.9% annually, topping its revenue gains
- ROE of 10.9% shows management can invest its resources competently
Capital One is trading at $242.08 per share, or 12.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 Exlservice (+354% 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.
