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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here are two stocks we think live up to the hype and one not so much.
One Stock to Sell:
Zions Bancorporation (ZION)
One-Month Return: +11.9%
Founded in 1873 during Utah's pioneer era and named after Mount Zion in the Bible, Zions Bancorporation (NASDAQ: ZION) operates seven regional banks across the Western United States, providing commercial, retail, and wealth management services to over a million customers.
Why Does ZION Give Us Pause?
- Annual net interest income growth of 3.8% over the last five years was below our standards for the banking sector
- Earnings per share lagged its peers over the last five years as they only grew by 5.3% annually
- 1.5% annual tangible book value per share growth over the last five years was slower than its banking peers
At $62.19 per share, Zions Bancorporation trades at 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than ZION.
Two Stocks to Watch:
CarGurus (CARG)
One-Month Return: +7%
Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ: CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
Why Does CARG Stand Out?
- Prominent and differentiated platform leads to a best-in-class gross margin of 86%
- Earnings per share grew by 26.2% annually over the last three years, massively outpacing its peers
- Free cash flow margin jumped by 14.9 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
CarGurus’s stock price of $37.74 implies a valuation ratio of 10.8x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Vertiv (VRT)
One-Month Return: +37.4%
Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.
Why Will VRT Outperform?
- Core business can prosper without any help from acquisitions as its organic revenue growth averaged 23.7% over the past two years
- Free cash flow margin grew by 22.4 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are growing as management capitalizes on its market opportunities
Vertiv is trading at $321.78 per share, or 47.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
