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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here is one stock with lasting competitive advantages and two not so much.
Two Stocks to Sell:
TEGNA (TGNA)
One-Month Return: +3.4%
Spun out of Gannett in 2015, TEGNA (NYSE:TGNA) is a media company operating a network of television stations and digital platforms, focusing on local news and community content.
Why Do We Pass on TGNA?
- Annual revenue declines of 2.5% over the last two years indicate problems with its market positioning
- Sales are projected to tank by 8.5% over the next 12 months as its demand continues evaporating
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 4.5 percentage points over the next year
At $21.01 per share, TEGNA trades at 11.3x forward P/E. To fully understand why you should be careful with TGNA, check out our full research report (it’s free).
Newmark (NMRK)
One-Month Return: +17.3%
Founded in 1929, Newmark (NASDAQ:NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.
Why Are We Out on NMRK?
- Sales trends were unexciting over the last five years as its 7.4% annual growth was below the typical consumer discretionary company
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 0% for the last two years
- ROIC of 2.7% reflects management’s challenges in identifying attractive investment opportunities
Newmark is trading at $19.62 per share, or 12.4x forward P/E. Check out our free in-depth research report to learn more about why NMRK doesn’t pass our bar.
One Stock to Buy:
WisdomTree (WT)
One-Month Return: +3.8%
Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE:WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.
Why Is WT a Good Business?
- Annual revenue growth of 18.6% over the last two years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 62.9% annual growth in its earnings per share outpaced its revenue
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
WisdomTree’s stock price of $14.11 implies a valuation ratio of 17.8x 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
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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-small-cap company Exlservice (+354% 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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