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. All that said, here is one stock we think lives up to the hype and two that may correct.
Two Stocks to Sell:
Bruker (BRKR)
One-Month Return: +8.2%
With roots dating back to the pioneering days of nuclear magnetic resonance technology, Bruker (NASDAQ: BRKR) develops and manufactures high-performance scientific instruments that enable researchers and industrial analysts to explore materials at microscopic, molecular, and cellular levels.
Why Do We Think Twice About BRKR?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable
- Waning returns on capital imply its previous profit engines are losing steam
Bruker’s stock price of $63.17 implies a valuation ratio of 27.5x forward P/E. To fully understand why you should be careful with BRKR, check out our full research report (it’s free).
Reinsurance Group of America (RGA)
One-Month Return: +0.9%
Operating behind the scenes of the insurance industry since 1973, Reinsurance Group of America (NYSE: RGA) provides life and health reinsurance services to insurance companies, helping them manage risk and meet regulatory requirements.
Why Should You Sell RGA?
- Net premiums earned only expanded by 1.3% annually over the last two years, trailing its insurance peers as its scale limited incremental business
- Scale is a double-edged sword because it limits the firm’s capital growth potential compared to its smaller competitors, as reflected in its below-average annual book value per share increases of 1.2% for the last five years
- Projected book value per share decline of 8.2% for the next 12 months points to tough credit quality challenges ahead
Reinsurance Group of America is trading at $249.44 per share, or 1.1x forward P/B. Read our free research report to see why you should think twice about including RGA in your portfolio.
One Stock to Buy:
Philip Morris (PM)
One-Month Return: +1.6%
Founded in 1847, Philip Morris International (NYSE: PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.
Why Will PM Beat the Market?
- Differentiated product offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 67%
- Excellent operating margin of 37% highlights the efficiency of its business model, and its rise over the last year was fueled by some leverage on its fixed costs
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
At $187.75 per share, Philip Morris trades at 21.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
