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1 Momentum Stock with Promising Prospects and 2 We Avoid

MTSI Cover Image

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. Keeping that in mind, here is one stock with the fundamentals to back up its performance and two best left ignored.

Two Stocks to Sell:

Interface (TILE)

One-Month Return: +10.8%

Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ: TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions.

Why Are We Wary of TILE?

  1. Annual revenue growth of 3.3% over the last five years was below our standards for the business services sector
  2. Estimated sales growth of 4.2% for the next 12 months is soft and implies weaker demand
  3. Earnings per share lagged its peers over the last five years as they only grew by 6.2% annually

Interface’s stock price of $31.49 implies a valuation ratio of 16x forward P/E. Dive into our free research report to see why there are better opportunities than TILE.

Independent Bank (INDB)

One-Month Return: +10.4%

Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. (NASDAQ: INDB) operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.

Why Does INDB Worry Us?

  1. Sales trends were unexciting over the last two years as its 8.2% annual growth was below the typical banking company
  2. Annual earnings per share growth of 1.3% underperformed its revenue over the last two years, showing its incremental sales were less profitable
  3. 3.8% annual tangible book value per share growth over the last two years was slower than its banking peers

Independent Bank is trading at $80.79 per share, or 1x forward P/B. Check out our free in-depth research report to learn more about why INDB doesn’t pass our bar.

One Stock to Watch:

MACOM (MTSI)

One-Month Return: +25.3%

Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.

Why Could MTSI Be a Winner?

  1. Annual revenue growth of 22.1% over the past two years was outstanding, reflecting market share gains this cycle
  2. Offerings are mission-critical for businesses and lead to a premier gross margin of 54.4%
  3. Earnings per share grew by 29.1% annually over the last five years, massively outpacing its peers

At $219.27 per share, MACOM trades at 53.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 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 (+1,326% 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.

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AMZN  239.30
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AAPL  259.48
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AMD  236.73
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BAC  53.20
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GOOG  338.53
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META  716.50
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MSFT  430.29
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NVDA  191.13
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