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.
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 is one stock with lasting competitive advantages and two best left ignored.
Two Stocks to Sell:
RenaissanceRe (RNR)
One-Month Return: +10.1%
Born in Bermuda after the devastating Hurricane Andrew created a crisis in the catastrophe insurance market, RenaissanceRe (NYSE: RNR) provides property, casualty, and specialty reinsurance and insurance solutions to customers worldwide, primarily through intermediaries.
Why Is RNR Not Exciting?
- Projected sales decline of 3.8% for the next 12 months points to a tough demand environment ahead
- Operational productivity has decreased over the last two years as its combined ratio worsened by 11.6 percentage points
- Incremental sales over the last two years were less profitable as its 2.8% annual earnings per share growth lagged its revenue gains
RenaissanceRe’s stock price of $280.59 implies a valuation ratio of 1.2x forward P/B. If you’re considering RNR for your portfolio, see our FREE research report to learn more.
PennyMac Financial Services (PFSI)
One-Month Return: +5.5%
Founded during the 2008 financial crisis to help address the mortgage market meltdown, PennyMac Financial Services (NYSE: PFSI) is a specialty financial services company that originates, services, and manages investments related to residential mortgage loans in the United States.
Why Does PFSI Worry Us?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.9% annually over the last five years
- 7.1% annual net interest income growth over the last five years was slower than its banking peers
- Earnings per share have contracted by 4.7% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
At $134.71 per share, PennyMac Financial Services trades at 1.6x forward P/B. Dive into our free research report to see why there are better opportunities than PFSI.
One Stock to Buy:
NCR Atleos (NATL)
One-Month Return: +7.5%
Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE: NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.
Why Will NATL Beat the Market?
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 82% outpaced its revenue gains
NCR Atleos is trading at $38.59 per share, or 8.3x forward P/E. Is now the right time to buy? See for yourself 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 6 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.
