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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here is one stock with the fundamentals to back up its performance and two not so much.
Two Stocks to Sell:
Rush Street Interactive (RSI)
One-Month Return: -1%
Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.
Why Is RSI Risky?
- Lackluster 28.5% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Operating margin of 6.9% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Free cash flow margin is forecasted to grow by 1.5 percentage points in the coming year, potentially giving the company more chips to play with
Rush Street Interactive’s stock price of $31.00 implies a valuation ratio of 45.6x forward P/E. To fully understand why you should be careful with RSI, check out our full research report (it’s free).
First Bancorp (FBNC)
One-Month Return: -1.2%
Founded during the Great Depression in 1934 and originally known as Montgomery Bancorp, First Bancorp (NASDAQ: FBNC) is a community-oriented commercial bank providing a wide range of financial services to businesses and individuals in North and South Carolina.
Why Is FBNC Not Exciting?
- 9.8% annual revenue growth over the last five years was slower than its banking peers
- Incremental sales over the last five years were less profitable as its 4.4% annual earnings per share growth lagged its revenue gains
- Low return on equity reflects management’s struggle to allocate funds effectively
First Bancorp is trading at $63.29 per share, or 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than FBNC.
One Stock to Buy:
Oscar Health (OSCR)
One-Month Return: -2%
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Is OSCR a Top Pick?
- Annual revenue growth of 42.6% over the last two years was superb and indicates its market share increased during this cycle
- Earnings per share have massively outperformed its peers over the last four years, increasing by 31.5% annually
- Free cash flow margin jumped by 19.9 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $28.86 per share, Oscar Health trades at 27.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
