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2 Mooning Stocks with Competitive Advantages and 1 Facing Challenges

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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 with lasting competitive advantages and one best left ignored.

One Stock to Sell:

Equitable Holdings (EQH)

One-Month Return: +0.3%

Tracing its roots back to 1859 as one of America's oldest financial institutions, Equitable Holdings (NYSE: EQH) provides retirement planning, asset management, and life insurance products through its two main franchises, Equitable and AllianceBernstein.

Why Do We Think Twice About EQH?

  1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.2% over the last five years was below our standards for the insurance sector
  2. Annual book value per share declines of 137% for the past five years show its capital management struggled during this cycle
  3. High debt-to-equity ratio of 2.4× shows the firm carries too much debt relative to shareholder equity, increasing bankruptcy risk

Equitable Holdings is trading at $54.05 per share, or 11.9x forward P/B. Read our free research report to see why you should think twice about including EQH in your portfolio.

Two Stocks to Watch:

Lyft (LYFT)

One-Month Return: +17.7%

Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada.

Why Does LYFT Stand Out?

  1. Active Riders have increased by an average of 10.3% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
  2. Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 39.2% outpaced its revenue gains
  3. Free cash flow margin jumped by 23.7 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $18.62 per share, Lyft trades at 13.9x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Curtiss-Wright (CW)

One-Month Return: +4.4%

Formed from a merger of 12 companies, Curtiss-Wright (NYSE: CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.

Why Do We Watch CW?

  1. Solid 10.2% annual revenue growth over the last two years indicates its offering’s solve complex business issues
  2. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 16.2%, and its profits increased over the last five years as it scaled
  3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 19.1% exceeded its revenue gains over the last two years

Curtiss-Wright’s stock price of $508.99 implies a valuation ratio of 38.6x 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

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 6 Stocks for this week. 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 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

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