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. All that said, here is one stock with lasting competitive advantages and two not so much.
Two Stocks to Sell:
Enact Holdings (ACT)
One-Month Return: +11.2%
Playing a critical role in helping first-time homebuyers access the housing market, Enact Holdings (NASDAQ: ACT) provides private mortgage insurance that enables lenders to offer home loans with lower down payments while protecting against borrower defaults.
Why Should You Sell ACT?
- Stagnant net premiums earned over the last five years suggest the firm needs alternative growth strategies
- Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 6.7% annually
At $45.70 per share, Enact Holdings trades at 1.1x forward P/B. Check out our free in-depth research report to learn more about why ACT doesn’t pass our bar.
Calumet (CLMT)
One-Month Return: +0.5%
With roots dating back to 1919 and facilities strategically positioned from Louisiana to Montana, Calumet (NASDAQ: CLMT) refines crude oil into specialty products like lubricating oils, solvents, and waxes used in cosmetics, batteries, and industrial applications.
Why Do We Think CLMT Will Underperform?
- Costly operations and weak unit economics result in an inferior gross margin of 7.4% that must be offset through higher production volumes
- Negative free cash flow raises questions about the return timeline for its investments
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Calumet’s stock price of $36.01 implies a valuation ratio of 162.9x forward P/E. Dive into our free research report to see why there are better opportunities than CLMT.
One Stock to Watch:
Halozyme Therapeutics (HALO)
One-Month Return: +14.3%
Known for transforming hours-long intravenous infusions into minutes-long subcutaneous injections, Halozyme Therapeutics (NASDAQ: HALO) develops and licenses its proprietary ENHANZE technology that enables subcutaneous delivery of injectable drugs that would otherwise require intravenous administration.
Why Do We Like HALO?
- Annual revenue growth of 32.2% over the last two years was superb and indicates its market share increased during this cycle
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 28.7% annually
- Strong free cash flow margin of 46.2% enables it to reinvest or return capital consistently
Halozyme Therapeutics is trading at $77.89 per share, or 8.8x forward P/E. Is now the time to initiate a position? 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
