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. All that said, here is one stock with the fundamentals to back up its performance and two best left ignored.
Two Stocks to Sell:
Cisco (CSCO)
One-Month Return: +8.4%
Founded in 1984 by a husband and wife team who wanted computers at Stanford to talk to computers at UC Berkeley, Cisco (NASDAQ:CSCO) designs and sells networking equipment, security solutions, and collaboration tools that help businesses connect their systems and secure their digital operations.
Why Does CSCO Fall Short?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Free cash flow margin dropped by 5.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Diminishing returns on capital suggest its earlier profit pools are drying up
Cisco is trading at $69.10 per share, or 17.7x forward P/E. Check out our free in-depth research report to learn more about why CSCO doesn’t pass our bar.
Horace Mann Educators (HMN)
One-Month Return: -2.6%
Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE:HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.
Why Are We Hesitant About HMN?
- Premium trends were unexciting over the last four years as its 6.1% annual growth was below the typical insurance company
- Annual book value per share declines of 1.7% for the past five years show its capital management struggled during this cycle
- Below-average return on equity indicates management struggled to find compelling investment opportunities
At $42.75 per share, Horace Mann Educators trades at 1.2x forward P/B. If you’re considering HMN for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
W. R. Berkley (WRB)
One-Month Return: -2.5%
Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE:WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.
Why Do We Love WRB?
- Annual net premiums earned growth of 13.6% over the last four years was superb and indicates its market share increased during this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 24.7% exceeded its revenue gains over the last five years
- Exciting book value per share outlook for the upcoming 12 months calls for 26.6% growth, an acceleration from its two-year trend
W. R. Berkley’s stock price of $72.34 implies a valuation ratio of 2.8x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today