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 are two stocks with lasting competitive advantages and one that may correct.
One Stock to Sell:
Exact Sciences (EXAS)
One-Month Return: +10.2%
With a mission to detect cancer earlier when it's more treatable, Exact Sciences (NASDAQ: EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test.
Why Does EXAS Fall Short?
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Negative returns on capital show that some of its growth strategies have backfired
Exact Sciences is trading at $67.48 per share, or 75.7x forward P/E. Check out our free in-depth research report to learn more about why EXAS doesn’t pass our bar.
Two Stocks to Watch:
Ross Stores (ROST)
One-Month Return: +2.8%
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ: ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Is ROST Interesting?
- Offensive push to build new stores and attack its untapped market opportunities is backed by its same-store sales growth
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.1% growth over the past two years
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Ross Stores’s stock price of $160.62 implies a valuation ratio of 24.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Hilton (HLT)
One-Month Return: +3.8%
Founded in 1919, Hilton Worldwide (NYSE: HLT) is a global hospitality company with a portfolio of hotel brands.
Why Does HLT Catch Our Eye?
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 24.1% return on capital demonstrates management’s skill in finding high-return investments, and its rising returns show it’s making even more lucrative bets
- Improving returns on capital reflect management’s ability to monetize investments
At $270.04 per share, Hilton trades at 30.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
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 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% 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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