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. All that said, here is one stock with the fundamentals to back up its performance and two that may correct.

Two Stocks to Sell:

Service International (SCI)

One-Month Return: +3.8%

Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.

Why Should You Dump SCI?

1. Performance surrounding its funeral services performed has lagged its peers
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 14.3% for the last two years
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Service International’s stock price of $80.92 implies a valuation ratio of 19.6x forward P/E. If you’re considering SCI for your portfolio, see our FREE research report to learn more.

TFS Financial (TFSL)

One-Month Return: +1.2%

Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial (NASDAQ: TFSL) is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.

Why Do We Think TFSL Will Underperform?

1. Annual net interest income growth of 3.9% over the last five years was below our standards for the banking sector
2. Inferior net interest margin of 1.7% means it must compensate for lower profitability through increased loan originations
3. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 2% annually

At $14.16 per share, TFS Financial trades at 2.1x forward P/B. Check out our free in-depth research report to learn more about why TFSL doesn’t pass our bar.

One Stock to Buy:

FTAI Aviation (FTAI)

One-Month Return: +67.5%

With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.

Why Will FTAI Beat the Market?

1. Market share has increased this cycle as its 43.9% annual revenue growth over the last two years was exceptional
2. Additional sales over the last two years increased its profitability as the 82.4% annual growth in its earnings per share outpaced its revenue
3. Negative free cash flow margin has improved over the last five years, showing the company is one step closer to financial self-sufficiency

FTAI Aviation is trading at $291.78 per share, or 48.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Check out the high-quality names we’ve flagged 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.