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. Keeping that in mind, here is one stock we think lives up to the hype and two best left ignored.

Two Stocks to Sell:

Accel Entertainment (ACEL)

One-Month Return: +10.1%

Established in Illinois, Accel Entertainment (NYSE: ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Why Are We Wary of ACEL?

1. Performance surrounding its video gaming terminals sold has lagged its peers
2. Estimated sales growth of 6.9% for the next 12 months implies demand will slow from its two-year trend
3. Poor free cash flow margin of 4.4% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Accel Entertainment’s stock price of $12.92 implies a valuation ratio of 13.8x forward P/E. If you’re considering ACEL for your portfolio, see our FREE research report to learn more.

TowneBank (TOWN)

One-Month Return: +5.1%

Founded in 1998 with a commitment to community-centered banking in the Hampton Roads region, TowneBank (NASDAQ: TOWN) is a community-focused financial institution providing banking, lending, and wealth management services to individuals and businesses in Virginia and North Carolina.

Why Does TOWN Fall Short?

1. 4.2% annual net interest income growth over the last four years was slower than its bank peers
2. Weak unit economics are reflected in its net interest margin of 3%, one of the worst among bank companies
3. Costs have risen faster than its revenue over the last four years, causing its efficiency ratio to worsen by 13.6 percentage points

At $35.88 per share, TowneBank trades at 1.2x forward P/B. Check out our free in-depth research report to learn more about why TOWN doesn’t pass our bar.

One Stock to Watch:

Armstrong World (AWI)

One-Month Return: +5.8%

Started as a two-man shop dating back to the 1860s, Armstrong (NYSE: AWI) provides ceiling and wall products to commercial and residential spaces.

Why Are We Fans of AWI?

1. 9.2% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
2. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 24.6%
3. Strong free cash flow margin of 19.6% enables it to reinvest or return capital consistently

Armstrong World is trading at $167.50 per share, or 23.4x 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

Trump’s April 2024 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-small-cap company Exlservice (+354% 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

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