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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here is one stock with lasting competitive advantages and two that may correct.
Two Stocks to Sell:
E.W. Scripps (SSP)
One-Month Return: +80.6%
Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ:SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.
Why Do We Avoid SSP?
- Lackluster 6.5% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
E.W. Scripps is trading at $4.25 per share, or 1x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than SSP.
APi (APG)
One-Month Return: +10.6%
Started in 1926 as an insulation contractor, APi (NYSE:APG) provides life safety solutions and specialty services for buildings and infrastructure.
Why Does APG Worry Us?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
APi’s stock price of $39.56 implies a valuation ratio of 24.6x forward P/E. To fully understand why you should be careful with APG, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
TJX (TJX)
One-Month Return: +8.3%
Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE:TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.
Why Should TJX Be on Your Watchlist?
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 4% over the past two years
- Massive revenue base of $58.98 billion makes up for its weaker gross margin and makes it a household name that influences purchasing decisions
- Industry-leading 27.9% return on capital demonstrates management’s skill in finding high-return investments, and its rising returns show it’s making even more lucrative bets
At $152.12 per share, TJX trades at 30.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
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 Kadant (+351% 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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