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.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. On that note, here are two stocks with lasting competitive advantages and one that may correct.

One Stock to Sell:

Littelfuse (LFUS)

One-Month Return: +2.5%

The developer of the first blade-type automotive fuse, Littelfuse (NASDAQ: LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries.

Why Are We Cautious About LFUS?

1. Sales tumbled by 4.7% annually over the last two years, showing market trends are working against its favor during this cycle
2. Earnings per share have contracted by 17.5% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Littelfuse is trading at $259.23 per share, or 25x forward P/E. Check out our free in-depth research report to learn more about why LFUS doesn’t pass our bar.

Two Stocks to Watch:

Rollins (ROL)

One-Month Return: -3.9%

Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE: ROL) provides pest and wildlife control services to residential and commercial customers.

Why Will ROL Beat the Market?

1. Annual revenue growth of 11.5% over the last two years was superb and indicates its market share increased during this cycle
2. Superior product capabilities and pricing power are reflected in its best-in-class gross margin of 52.2%
3. ROL is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Rollins’s stock price of $56.15 implies a valuation ratio of 48.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Medpace (MEDP)

One-Month Return: +10%

Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ: MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.

Why Do We Watch MEDP?

1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 15.7% over the past two years
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 36.7% exceeded its revenue gains over the last five years
3. Industry-leading 44.1% return on capital demonstrates management’s skill in finding high-return investments

At $475.51 per share, Medpace trades at 38.8x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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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