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 best left ignored.
Two Stocks to Sell:
Laureate Education (LAUR)
One-Month Return: +1.1%
Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ: LAUR) is a global network of higher education institutions.
Why Does LAUR Fall Short?
- Performance surrounding its enrolled students has lagged its peers
- Earnings per share were flat over the last five years and fell short of the peer group average
- ROIC of 7.6% reflects management’s challenges in identifying attractive investment opportunities
Laureate Education is trading at $22.90 per share, or 15.2x forward P/E. To fully understand why you should be careful with LAUR, check out our full research report (it’s free).
Jabil (JBL)
One-Month Return: +12.5%
With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE: JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.
Why Do We Think Twice About JBL?
- Sales tumbled by 11.6% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share were flat over the last two years and fell short of the peer group average
- Low free cash flow margin of 3.1% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
At $169 per share, Jabil trades at 17.5x forward P/E. Read our free research report to see why you should think twice about including JBL in your portfolio.
One Stock to Buy:
GE Aerospace (GE)
One-Month Return: +18.3%
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
Why Are We Bullish on GE?
- Market share has increased this cycle as its 20.1% annual revenue growth over the last two years was exceptional
- Robust free cash flow margin of 16.2% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety
- Improving returns on capital reflect management’s ability to monetize investments
GE Aerospace’s stock price of $247.25 implies a valuation ratio of 44.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
