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 not so much.
Two Stocks to Sell:
Kontoor Brands (KTB)
One-Month Return: +17.6%
Founded in 2019 after separating from VF Corporation, Kontoor Brands (NYSE: KTB) is a clothing company known for its high-quality denim products.
Why Should You Sell KTB?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 7.6% annually
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Kontoor Brands is trading at $85 per share, or 15.4x forward P/E. Dive into our free research report to see why there are better opportunities than KTB.
Columbia Banking System (COLB)
One-Month Return: +6.7%
Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ: COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.
Why Are We Cautious About COLB?
- 9.6% annual revenue growth over the last two years was slower than its banking peers
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 2.1% annually while its revenue grew
- Annual tangible book value per share declines of 1.3% for the past five years show its capital management struggled during this cycle
At $31.67 per share, Columbia Banking System trades at 1.2x forward P/B. If you’re considering COLB for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
UnitedHealth (UNH)
One-Month Return: +4.5%
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
Why Do We Like UNH?
- Decent 11.3% annual revenue growth over the last five years beat most of its peers, showing customers find value in its products and services
- Unparalleled scale of $449.7 billion in revenue enables it to spread administrative costs across a larger membership base
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
UnitedHealth’s stock price of $424.70 implies a valuation ratio of 22.4x 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
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
