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 with lasting competitive advantages and two not so much.
Two Stocks to Sell:
Astec (ASTE)
One-Month Return: +8.1%
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ: ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Why Are We Wary of ASTE?
- Backlog has dropped by 28.2% on average over the past two years, suggesting it’s losing orders as competition picks up
- Gross margin of 23.9% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Cash burn makes us question whether it can achieve sustainable long-term growth
Astec is trading at $47.60 per share, or 14.9x forward P/E. Read our free research report to see why you should think twice about including ASTE in your portfolio.
Huntington Ingalls (HII)
One-Month Return: +19.9%
Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls (NYSE: HII) develops marine vessels and their mission systems and maintenance services.
Why Do We Think HII Will Underperform?
- Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 4.9% for the past two years was weak
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 1.1% annually while its revenue grew
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Huntington Ingalls’s stock price of $377.64 implies a valuation ratio of 21.5x forward P/E. Dive into our free research report to see why there are better opportunities than HII.
One Stock to Watch:
Viasat (VSAT)
One-Month Return: +7.1%
Operating a fleet of 23 satellites that orbit the Earth and beam connectivity from space, Viasat (NASDAQ: VSAT) provides satellite-based communications networks and services for airlines, maritime vessels, governments, businesses, and residential customers worldwide.
Why Do We Watch VSAT?
- Impressive 17.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Economies of scale give it more fixed cost leverage than its smaller competitors
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
At $38.68 per share, Viasat trades at 74.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
