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. All that said, here is one stock we think lives up to the hype and two that may correct.
Two Stocks to Sell:
Guess (GES)
One-Month Return: +0.5%
Flexing the iconic upside-down triangle logo with a question mark, Guess (NYSE: GES) is a global fashion brand known for its trendy clothing, accessories, and denim wear.
Why Do We Think GES Will Underperform?
- Muted 8.7% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $16.86 per share, Guess trades at 10.7x forward P/E. Dive into our free research report to see why there are better opportunities than GES.
Douglas Dynamics (PLOW)
One-Month Return: +10.4%
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE: PLOW) offers snow and ice equipment for the roads and sidewalks.
Why Does PLOW Give Us Pause?
- 1.8% annual revenue growth over the last two years was slower than its industrials peers
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2.2 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
Douglas Dynamics’s stock price of $36.92 implies a valuation ratio of 15.5x forward P/E. Check out our free in-depth research report to learn more about why PLOW doesn’t pass our bar.
One Stock to Buy:
Monster (MNST)
One-Month Return: +3.4%
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Will MNST Beat the Market?
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 28%, and it turbocharged its profits by achieving some fixed cost leverage
- MNST is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business
- Industry-leading 37.3% return on capital demonstrates management’s skill in finding high-return investments
Monster is trading at $77.92 per share, or 35.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 5 Growth Stocks for this month. 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.
