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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. On that note, here are two stocks with lasting competitive advantages and one not so much.
One Stock to Sell:
FOX (FOXA)
One-Month Return: +13.5%
Founded in 1915, Fox (NASDAQ:FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.
Why Do We Steer Clear of FOXA?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 5.1% over the last two years was below our standards for the consumer discretionary sector
- Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
- Free cash flow margin is forecasted to shrink by 11.2 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
FOX’s stock price of $65.93 implies a valuation ratio of 14.5x forward P/E. Read our free research report to see why you should think twice about including FOXA in your portfolio.
Two Stocks to Watch:
Datadog (DDOG)
One-Month Return: +15.7%
Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) provides a software platform that helps organizations monitor and secure their cloud applications, infrastructure, and services.
Why Is DDOG a Top Pick?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Datadog is trading at $190.00 per share, or 18.3x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Butterfield Bank (NTB)
One-Month Return: +10.5%
Founded in 1784 as one of the oldest banks in the Western Hemisphere, Butterfield Bank (NYSE:NTB) provides banking, wealth management, and trust services to individuals and businesses in select offshore financial centers including Bermuda, Cayman Islands, and the Channel Islands.
Why Are We Positive On NTB?
- Annual net interest income growth of 13.7% over the past five years was outstanding, reflecting market share gains this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $46.11 per share, Butterfield Bank trades at 1.7x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. 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 (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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