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. On that note, here is one stock we think lives up to the hype and two that may correct.
Two Stocks to Sell:
Pitney Bowes (PBI)
One-Month Return: +6%
With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes (NYSE:PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes.
Why Do We Think Twice About PBI?
- Annual sales declines of 12.6% for the past five years show its products and services struggled to connect with the market during this cycle
- Forecasted revenue decline of 2% for the upcoming 12 months implies demand will fall even further
Pitney Bowes’s stock price of $16.86 implies a valuation ratio of 10.3x forward P/E. Read our free research report to see why you should think twice about including PBI in your portfolio.
Franklin Resources (BEN)
One-Month Return: -0.5%
Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE:BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.
Why Do We Pass on BEN?
- Sales trends were unexciting over the last five years as its 5.4% annual growth was below the typical financials company
- Earnings per share fell by 1.6% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Underwhelming 8% return on equity reflects management’s difficulties in finding profitable growth opportunities
At $31.39 per share, Franklin Resources trades at 11.1x forward P/E. Dive into our free research report to see why there are better opportunities than BEN.
One Stock to Buy:
Monster (MNST)
One-Month Return: +3%
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ:MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Should You Buy MNST?
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 28.4%, and it turbocharged its profits by achieving some fixed cost leverage
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its rising returns show it’s making even more lucrative bets
Monster is trading at $88.96 per share, or 38.1x 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
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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.