The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.
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 we think lives up to the hype and two best left ignored.
Two Stocks to Sell:
Brookdale (BKD)
One-Month Return: +5.7%
With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.
Why Does BKD Fall Short?
- Annual sales declines of 3.8% for the past five years show its products and services struggled to connect with the market during this cycle
- Underwhelming -0.5% return on capital reflects management’s difficulties in finding profitable growth opportunities
Brookdale’s stock price of $8.95 implies a valuation ratio of 4.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BKD doesn’t pass our bar.
Maximus (MMS)
One-Month Return: -6.8%
With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE: MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.
Why Are We Cautious About MMS?
- Estimated sales growth of 3.2% for the next 12 months implies demand will slow from its two-year trend
- Free cash flow margin shrank by 11.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Low returns on capital reflect management’s struggle to allocate funds effectively
Maximus is trading at $85.14 per share, or 11.5x forward P/E. Read our free research report to see why you should think twice about including MMS in your portfolio.
One Stock to Watch:
Primoris (PRIM)
One-Month Return: +7.3%
Listed on the NASDAQ in 2008, Primoris (NYSE: PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.
Why Do We Like PRIM?
- Market share has increased this cycle as its 15.9% annual revenue growth over the last five years was exceptional
- Sales pipeline is in good shape as its backlog averaged 159% growth over the past two years
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 28.6% annually
At $147.39 per share, Primoris trades at 28.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
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 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
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