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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here is one stock with lasting competitive advantages and two that may correct.
Two Stocks to Sell:
Old Republic International (ORI)
One-Month Return: +3.9%
Founded during the Roaring Twenties in 1923 and weathering nearly a century of economic cycles, Old Republic International (NYSE: ORI) is a diversified insurance holding company that provides property, liability, title, and mortgage guaranty insurance through its various subsidiaries.
Why Do We Pass on ORI?
- Sales trends were unexciting over the last five years as its 1.6% annual growth was below the typical insurance company
- Net premiums earned expanded by 2.7% annually over the last five years, falling below our expectations for the insurance sector
- Annual earnings per share growth of 2.1% underperformed its revenue over the last two years, showing its incremental sales were less profitable
At $43.21 per share, Old Republic International trades at 1.7x forward P/B. To fully understand why you should be careful with ORI, check out our full research report (it’s free).
Viking (VIK)
One-Month Return: +3.8%
From a single river cruise offering to a fleet of 96 vessels across multiple continents, Viking (NYSE: VIK) operates a fleet of small luxury cruise ships offering river, ocean, and expedition voyages focused on cultural enrichment and destination immersion.
Why Do We Think VIK Will Underperform?
- Muted 17.8% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
- Operating margin of 21.9% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 20.9% for the last two years
Viking’s stock price of $104.35 implies a valuation ratio of 30.6x forward P/E. If you’re considering VIK for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Crane (CR)
One-Month Return: -3.1%
Based in Connecticut, Crane (NYSE: CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Why Is CR on Our Radar?
- Efficiency rose over the last five years as its Operating margin increased by 5.3 percentage points
- Additional sales over the last two years increased its profitability as the 21.9% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 5.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Crane is trading at $213.24 per share, or 29.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
