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. On that note, here is one stock with the fundamentals to back up its performance and two that may correct.

Two Stocks to Sell:

Take-Two (TTWO)

One-Month Return: +2.9%

Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ: TTWO) is one of the world’s largest video game publishers.

Why Are We Cautious About TTWO?

1. Estimated sales growth of 4.8% for the next 12 months implies demand will slow from its three-year trend
2. Earnings per share fell by 487% annually over the last three years while its revenue grew, partly because it diluted shareholders
3. Negative free cash flow raises questions about the return timeline for its investments

At $254.46 per share, Take-Two trades at 50.5x forward EV/EBITDA. Read our free research report to see why you should think twice about including TTWO in your portfolio.

RTX (RTX)

One-Month Return: +11.3%

Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.

Why Are We Hesitant About RTX?

1. Estimated sales growth of 5.2% for the next 12 months implies demand will slow from its two-year trend
2. Operating margin of 7.5% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
3. ROIC of 4.1% reflects management’s challenges in identifying attractive investment opportunities

RTX is trading at $190.98 per share, or 29.3x forward P/E. Dive into our free research report to see why there are better opportunities than RTX.

One Stock to Watch:

CRA (CRAI)

One-Month Return: +14.8%

Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ: CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy.

Why Are We Fans of CRAI?

1. Market share has increased this cycle as its 9.7% annual revenue growth over the last two years was exceptional
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 27.6% exceeded its revenue gains over the last two years
3. ROIC punches in at 18.7%, illustrating management’s expertise in identifying profitable investments

CRA’s stock price of $215.17 implies a valuation ratio of 24.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.