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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here is one stock we think lives up to the hype and two not so much.
Two Stocks to Sell:
Genesco (GCO)
One-Month Return: +19%
Spanning a broad range of styles, brands, and prices, Genesco (NYSE: GCO) sells footwear, apparel, and accessories through multiple brands and banners.
Why Should You Dump GCO?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- High net-debt-to-EBITDA ratio of 8× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Genesco is trading at $39.05 per share, or 0.2x forward price-to-sales. If you’re considering GCO for your portfolio, see our FREE research report to learn more.
XPO (XPO)
One-Month Return: +7.4%
Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE: XPO) is a transportation company specializing in expedited shipping services.
Why Is XPO Not Exciting?
- Sales trends were unexciting over the last two years as its 2.8% annual growth was below the typical industrials company
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 19.8%
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 1.6% for the last five years
XPO’s stock price of $216.44 implies a valuation ratio of 44.8x forward P/E. Dive into our free research report to see why there are better opportunities than XPO.
One Stock to Watch:
Elevance Health (ELV)
One-Month Return: +7.2%
Formerly known as Anthem until its 2022 rebranding, Elevance Health (NYSE: ELV) is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.
Why Does ELV Stand Out?
- Decent 9.9% annual revenue growth over the last five years beat most of its peers, showing customers find value in its products and services
- Enormous revenue base of $198.3 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $409.42 per share, Elevance Health trades at 16.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
