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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here is one stock with the fundamentals to back up its performance and two best left ignored.
Two Stocks to Sell:
Wynn Resorts (WYNN)
One-Month Return: +13.5%
Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ: WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.
Why Are We Hesitant About WYNN?
- Muted 9.9% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
- Low returns on capital reflect management’s struggle to allocate funds effectively
- High net-debt-to-EBITDA ratio of 5× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Wynn Resorts is trading at $129.75 per share, or 27.8x forward P/E. If you’re considering WYNN for your portfolio, see our FREE research report to learn more.
Hewlett Packard Enterprise (HPE)
One-Month Return: +11.4%
Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE: HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.
Why Does HPE Give Us Pause?
- Annual sales growth of 4.2% over the last five years lagged behind its business services peers as its large revenue base made it difficult to generate incremental demand
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 7.5% annually while its revenue grew
- ROIC of 2.9% reflects management’s challenges in identifying attractive investment opportunities
Hewlett Packard Enterprise’s stock price of $25 implies a valuation ratio of 11x forward P/E. Dive into our free research report to see why there are better opportunities than HPE.
One Stock to Watch:
JFrog (FROG)
One-Month Return: +6.8%
Named after the amphibian that continuously evolves from egg to tadpole to adult, JFrog (NASDAQ: FROG) provides a platform that helps organizations securely create, store, manage, and distribute software packages across any system.
Why Are We Fans of FROG?
- Impressive 23.3% annual revenue growth over the last two years indicates it’s winning market share
- Average billings growth of 26.1% over the last year enhances its liquidity and shows there is steady demand for its products
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
At $50.25 per share, JFrog trades at 10.5x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
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