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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here is one stock with lasting competitive advantages and two not so much.
Two Stocks to Sell:
Mondelez (MDLZ)
One-Month Return: +4.4%
Founded as Nabisco in 1903, Mondelez (NASDAQ:MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.
Why Does MDLZ Worry Us?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Estimated sales growth of 2.6% for the next 12 months implies demand will slow from its three-year trend
- Incremental sales over the last three years were much less profitable as its earnings per share fell by 3% annually while its revenue grew
Mondelez’s stock price of $63.69 implies a valuation ratio of 19.7x forward P/E. Dive into our free research report to see why there are better opportunities than MDLZ.
Lincoln Financial Group (LNC)
One-Month Return: +7.6%
Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE:LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.
Why Is LNC Not Exciting?
- Net premiums earned plateaued over the last five years, signaling weak incremental demand for its insurance policies
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 6.1% annually
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 14% annually over the last five years
Lincoln Financial Group is trading at $45.47 per share, or 0.8x forward P/B. If you’re considering LNC for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Wabtec (WAB)
One-Month Return: +14.2%
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry.
Why Is WAB a Top Pick?
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.1% exceeded its revenue gains over the last two years
- WAB is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
At $299.17 per share, Wabtec trades at 26x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.