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. On that note, here are two stocks we think live up to the hype and one that may correct.
One Stock to Sell:
Goldman Sachs (GS)
One-Month Return: +6.2%
Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE: GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.
Why Do We Think Twice About GS?
- The company has faced growth challenges as its 2.5% annual revenue increases over the last five years fell short of other financials companies
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 3.1% annually
- Sizable asset base leads to capital growth challenges as its 5.9% annual tangible book value per share increases over the last two years fell short of other financials companies
Goldman Sachs is trading at $983.96 per share, or 15.6x forward P/E. To fully understand why you should be careful with GS, check out our full research report (it’s free).
Two Stocks to Buy:
Oscar Health (OSCR)
One-Month Return: +43.3%
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Should You Buy OSCR?
- Annual revenue growth of 42.6% over the last two years was superb and indicates its market share increased during this cycle
- Earnings growth has trumped its peers over the last four years as its EPS has compounded at 31.5% annually
- Free cash flow margin expanded by 19.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $23.18 per share, Oscar Health trades at 20.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
SM Energy (SM)
One-Month Return: +24.1%
Operating across three key regions with over 328,000 net acres under its control, SM Energy (NYSE: SM) explores for, develops, and produces oil, natural gas, and natural gas liquids primarily from shale formations in Texas and Utah.
Why Is SM a Top Pick?
- Annual revenue growth of 25.5% over the past five years was outstanding, reflecting market share gains this cycle
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 87.2%
- EBITDA margin improvement of 18 percentage points over the last five years demonstrates its ability to scale efficiently
SM Energy’s stock price of $34.86 implies a valuation ratio of 4.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
