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. On that note, here is one stock with the fundamentals to back up its performance and two not so much.
Two Stocks to Sell:
Sealed Air (SEE)
One-Month Return: +21.2%
Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.
Why Should You Dump SEE?
- Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Waning returns on capital imply its previous profit engines are losing steam
Sealed Air’s stock price of $42.30 implies a valuation ratio of 13.2x forward P/E. If you’re considering SEE for your portfolio, see our FREE research report to learn more.
Array (AD)
One-Month Return: -9.5%
Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, Array (NYSE: Array) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services.
Why Are We Out on AD?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 6.8% annually over the last five years
- Earnings per share have contracted by 42.7% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- Underwhelming 0.7% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
At $45.26 per share, Array trades at 322.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including AD in your portfolio.
One Stock to Buy:
Rollins (ROL)
One-Month Return: +5.5%
Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE: ROL) provides pest and wildlife control services to residential and commercial customers.
Why Are We Bullish on ROL?
- Annual revenue growth of 11.5% over the past five years was outstanding, reflecting market share gains this cycle
- Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 52.3%
- Robust free cash flow margin of 16.5% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
Rollins is trading at $59.16 per share, or 47.2x 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
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 Kadant (+351% 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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