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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here is one stock with lasting competitive advantages and two best left ignored.

Two Stocks to Sell:

Olaplex (OLPX)

One-Month Return: +22.1%

Rising to fame on TikTok because of its “bond building" hair products, Olaplex (NASDAQ: OLPX) offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.

Why Are We Wary of OLPX?

1. Products aren't resonating with the market as its revenue declined by 17.3% annually over the last three years
2. Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
3. 14.7 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

At $1.58 per share, Olaplex trades at 17.6x forward P/E. Dive into our free research report to see why there are better opportunities than OLPX.

Westamerica Bancorporation (WABC)

One-Month Return: +3.1%

Founded in 1884 and serving communities from Mendocino County in the north to Kern County in the south, Westamerica Bancorporation (NASDAQ: WABC) provides banking services to individuals and small businesses throughout Northern and Central California.

Why Do We Steer Clear of WABC?

1. Annual net interest income growth of 5.9% over the last five years was below our standards for the banking sector
2. 48.9 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position
3. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 13.7% annually, worse than its revenue

Westamerica Bancorporation’s stock price of $51.15 implies a valuation ratio of 1.3x forward P/B. To fully understand why you should be careful with WABC, check out our full research report (it’s free).

One Stock to Buy:

Moelis (MC)

One-Month Return: +8.2%

Founded in 2007 by veteran banker Ken Moelis during the lead-up to the financial crisis, Moelis & Company (NYSE: MC) is an independent investment bank that provides strategic and financial advisory services to corporations, financial sponsors, governments, and sovereign wealth funds.

Why Do We Love MC?

1. Market share has increased this cycle as its 32.5% annual revenue growth over the last two years was exceptional
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 299% over the last two years outstripped its revenue performance
3. ROE punches in at 44.9%, illustrating management’s expertise in identifying profitable investments

Moelis is trading at $76.90 per share, or 24.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Check out the high-quality names we’ve flagged in 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.