Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
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 are two stocks with lasting competitive advantages and one that may correct.
One Stock to Sell:
WSFS Financial (WSFS)
One-Month Return: +17.6%
Founded in 1832 as Wilmington Savings Fund Society and one of the oldest banks in America still operating under its original name, WSFS Financial (NASDAQ: WSFS) operates a community banking and wealth management franchise primarily serving customers in the Mid-Atlantic region through its main subsidiary, WSFS Bank.
Why Are We Wary of WSFS?
- Net interest income trends were unexciting over the last five years as its 9.3% annual growth was below the typical banking firm
- Estimated net interest income growth of 2.6% for the next 12 months implies demand will slow from its five-year trend
- 26.9 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position
WSFS Financial is trading at $66.59 per share, or 1.2x forward P/B. To fully understand why you should be careful with WSFS, check out our full research report (it’s free).
Two Stocks to Watch:
Watts Water Technologies (WTS)
One-Month Return: +10.5%
Founded in 1874, Watts Water (NYSE: WTS) specializes in manufacturing water products and systems for residential, commercial, and industrial applications globally.
Why Is WTS a Good Business?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 10.1% annual sales growth over the last five years
- Share repurchases over the last five years enabled its annual earnings per share growth of 22.2% to outpace its revenue gains
- Free cash flow margin jumped by 6.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Watts Water Technologies’s stock price of $328.37 implies a valuation ratio of 28.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Raymond James (RJF)
One-Month Return: -9.1%
Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE: RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.
Why Are We Positive On RJF?
- 11.7% annual revenue growth over the last five years surpassed the sector average as its products resonated with customers
- Performance over the past five years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- ROE punches in at 17.9%, illustrating management’s expertise in identifying profitable investments
At $156.10 per share, Raymond James trades at 12.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
