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. Keeping that in mind, here is one stock we think lives up to the hype and two that may correct.
Two Stocks to Sell:
Sotera Health Company (SHC)
One-Month Return: +13%
With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.
Why Do We Think Twice About SHC?
- Smaller revenue base of $1.15 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Estimated sales growth of 4.4% for the next 12 months implies demand will slow from its two-year trend
- Free cash flow margin dropped by 9.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Sotera Health Company’s stock price of $18.99 implies a valuation ratio of 20.8x forward P/E. If you’re considering SHC for your portfolio, see our FREE research report to learn more.
BOK Financial (BOKF)
One-Month Return: +3.1%
Tracing its roots back to 1910 when Oklahoma was still a young state, BOK Financial (NASDAQ: BOKF) is a regional bank holding company that provides commercial banking, consumer banking, and wealth management services across eight states in the central and southwestern US.
Why Do We Avoid BOKF?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- 3.7% annual net interest income growth over the last five years was slower than its banking peers
- Earnings per share fell by 4.8% annually over the last two years while its revenue was flat, showing each sale was less profitable
At $122.98 per share, BOK Financial trades at 1.3x forward P/B. Read our free research report to see why you should think twice about including BOKF in your portfolio.
One Stock to Watch:
Carvana (CVNA)
One-Month Return: +3.8%
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Why Is CVNA on Our Radar?
- Has the opportunity to boost monetization through new features and premium offerings as its retail units sold have grown by 31.4% annually over the last two years
- Additional sales over the last three years increased its profitability as the 38.5% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 19.3 percentage points over the last few years, giving the company more chips to play with
Carvana is trading at $465.02 per share, or 26x forward EV/EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
