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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here are two stocks with lasting competitive advantages and one not so much.
One Stock to Sell:
AECOM (ACM)
One-Month Return: +14.8%
Founded in 1990 when a group of engineers from five companies decided to merge, AECOM (NYSE: ACM) provides various infrastructure consulting services.
Why Are We Cautious About ACM?
- Demand cratered as it couldn’t win new orders over the past two years, leading to an average 2% decline in its backlog
- High input costs result in an inferior gross margin of 6.6% that must be offset through higher volumes
- Subpar operating margin of 4.5% constrains its ability to invest in process improvements or effectively respond to new competitive threats
At $128.55 per share, AECOM trades at 23.2x forward P/E. Read our free research report to see why you should think twice about including ACM in your portfolio.
Two Stocks to Buy:
Stride (LRN)
One-Month Return: +26.6%
Formerly known as K12, Stride (NYSE: LRN) is an education technology company providing education solutions through digital platforms.
Why Will LRN Outperform?
- Number of enrollments has surged, pointing to elevated demand
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 56.8% over the last two years outstripped its revenue performance
- Free cash flow margin increased by 8.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Stride is trading at $165 per share, or 20.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
S&P Global (SPGI)
One-Month Return: -2.6%
Tracing its roots back to 1860 when it published the first railroad industry manual, S&P Global (NYSE: SPGI) provides credit ratings, market intelligence, commodity data, automotive analytics, and financial indices that help investors and businesses make decisions.
Why Is SPGI a Top Pick?
- Solid 13% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
S&P Global’s stock price of $548.65 implies a valuation ratio of 31.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. 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 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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