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1 Momentum Stock to Research Further and 2 We Avoid

AMGN Cover Image

The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.

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 we think lives up to the hype and two that may correct.

Two Stocks to Sell:

Peoples Bancorp (PEBO)

One-Month Return: +6.8%

Founded in 1902 in Ohio and expanding through both organic growth and acquisitions, Peoples Bancorp (NASDAQ: PEBO) is a financial holding company that provides banking, insurance, equipment leasing, and investment services to consumers and businesses.

Why Do We Think Twice About PEBO?

  1. Sales trends were unexciting over the last two years as its 3.5% annual growth was below the typical banking company
  2. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 45.3 basis points (100 basis points = 1 percentage point)
  3. Incremental sales over the last two years were much less profitable as its earnings per share fell by 12.4% annually while its revenue grew

Peoples Bancorp’s stock price of $33.72 implies a valuation ratio of 0.9x forward P/B. If you’re considering PEBO for your portfolio, see our FREE research report to learn more.

FB Financial (FBK)

One-Month Return: +0.1%

Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE: FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.

Why Does FBK Fall Short?

  1. Annual revenue growth of 1.9% over the last five years was below our standards for the banking sector
  2. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 2.4% annually
  3. Capital trends were unexciting over the last two years as its 8.6% annual tangible book value per share growth was below the typical banking firm

At $58.56 per share, FB Financial trades at 1.4x forward P/B. Read our free research report to see why you should think twice about including FBK in your portfolio.

One Stock to Watch:

Amgen (AMGN)

One-Month Return: +14.5%

Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.

Why Are We Positive On AMGN?

  1. Offerings and unique value proposition resonate with customers, as seen in its above-market 14.2% annual sales growth over the last two years
  2. $36.75 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
  3. Robust free cash flow margin of 28.6% gives it many options for capital deployment

Amgen is trading at $379 per share, or 16.7x forward P/E. Is now a good time to buy? Find out 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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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