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.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here is one stock we think lives up to the hype and two that may correct.

Two Stocks to Sell:

Knowles (KN)

One-Month Return: +3.4%

With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE: KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications.

Why Do We Think KN Will Underperform?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.2% annually over the last five years
2. Smaller revenue base of $614.1 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Earnings per share lagged its peers over the last five years as they only grew by 5.2% annually

At $37.49 per share, Knowles trades at 28x forward P/E. Check out our free in-depth research report to learn more about why KN doesn’t pass our bar.

NBT Bancorp (NBTB)

One-Month Return: +5.3%

Tracing its roots back to 1856 when it first opened its doors in Norwich, New York, NBT Bancorp (NASDAQ: NBTB) is a community-oriented financial institution providing banking, wealth management, and insurance services to individuals and businesses across the northeastern United States.

Why Does NBTB Give Us Pause?

1. Muted 9.4% annual revenue growth over the last five years shows its demand lagged behind its banking peers
2. Performance over the past five years shows its incremental sales were less profitable, as its 4.8% annual earnings per share growth trailed its revenue gains
3. Projected tangible book value per share growth of 11.1% for the next 12 months suggests sluggish capital generation

NBT Bancorp’s stock price of $47.20 implies a valuation ratio of 1.2x forward P/B. To fully understand why you should be careful with NBTB, check out our full research report (it’s free).

One Stock to Buy:

Wabtec (WAB)

One-Month Return: -0.9%

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.

Why Is WAB a Good Business?

1. Offerings and unique value proposition resonate with customers, as seen in its above-market 9.1% annual sales growth over the last five years
2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Wabtec is trading at $265.77 per share, or 24.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.