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 not so much.
Two Stocks to Sell:
Entegris (ENTG)
One-Month Return: +38%
With fabs representing the company’s largest customer type, Entegris (NASDAQ: ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.
Why Do We Steer Clear of ENTG?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.1% annually over the last two years
- Estimated sales growth of 2.5% for the next 12 months is soft and implies weaker demand
- Low free cash flow margin of 9.3% declined over the last five years as its investments ramped, giving it little breathing room
Entegris’s stock price of $117.45 implies a valuation ratio of 40.4x forward P/E. If you’re considering ENTG for your portfolio, see our FREE research report to learn more.
Thermo Fisher (TMO)
One-Month Return: +7.6%
With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific (NYSE: TMO) provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide.
Why Do We Think Twice About TMO?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 9.2 percentage points
Thermo Fisher is trading at $619.43 per share, or 25.7x forward P/E. Read our free research report to see why you should think twice about including TMO in your portfolio.
One Stock to Buy:
Powell (POWL)
One-Month Return: +25%
Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE: POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.
Why Are We Bullish on POWL?
- Annual revenue growth of 25.7% over the past two years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 86.5% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin jumped by 21.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $420.70 per share, Powell trades at 27.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Check out the high-quality names we’ve flagged 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.
