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.

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 is one stock we think lives up to the hype and two that may correct.

Two Stocks to Sell:

Norfolk Southern (NSC)

One-Month Return: +3.3%

Starting with a single route from Virginia to North Carolina, Norfolk Southern (NYSE: NSC) is a freight transportation company operating a major railroad network across the eastern United States.

Why Should You Dump NSC?

1. Underwhelming unit sales over the past two years imply it may need to invest in improvements to get back on track
2. Earnings per share have dipped by 4.5% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.8 percentage points

Norfolk Southern’s stock price of $286.50 implies a valuation ratio of 21.3x forward P/E. If you’re considering NSC for your portfolio, see our FREE research report to learn more.

Affiliated Managers Group (AMG)

One-Month Return: +4.9%

Using a partnership approach that preserves entrepreneurial culture at its portfolio companies, Affiliated Managers Group (NYSE: AMG) is an investment firm that acquires stakes in boutique asset management companies while allowing them to maintain operational independence.

Why Does AMG Worry Us?

1. Sales stagnated over the last five years and signal the need for new growth strategies
2. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.4% annually

At $216.85 per share, Affiliated Managers Group trades at 8.7x forward P/E. Dive into our free research report to see why there are better opportunities than AMG.

One Stock to Buy:

Vital Farms (VITL)

One-Month Return: +34.9%

With an emphasis on ethically produced products, Vital Farms (NASDAQ: VITL) specializes in pasture-raised eggs and butter.

Why Do We Love VITL?

1. Products are flying off the shelves as its unit sales averaged 20.1% growth over the past two years
2. Demand for the next 12 months is expected to accelerate above its three-year trend as Wall Street forecasts robust revenue growth of 31.3%
3. Earnings growth has trumped its peers over the last three years as its EPS has compounded at 109% annually

Vital Farms is trading at $49.79 per share, or 35.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 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 Kadant (+351% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.