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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here are two stocks with lasting competitive advantages and one that may correct.
One Stock to Sell:
Ziff Davis (ZD)
One-Month Return: -1.5%
Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ: ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets.
Why Are We Bearish on ZD?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 5.7 percentage points
- Earnings per share have dipped by 9% annually over the past five years, which is concerning because stock prices follow EPS over the long term
At $56.51 per share, Ziff Davis trades at 10.3x forward P/E. Dive into our free research report to see why there are better opportunities than ZD.
Two Stocks to Buy:
AMETEK (AME)
One-Month Return: +6.4%
Started from its humble beginnings in motor repair, AMETEK (NYSE: AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.
Why Is AME a Good Business?
- Solid 9.8% annual revenue growth over the last five years indicates its offerings solve complex business issues
- Excellent operating margin of 25.4% highlights the efficiency of its business model, and its rise over the last five years was fueled by some leverage on its fixed costs
- Robust free cash flow margin of 21.7% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety
AMETEK is trading at $248.61 per share, or 27.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Amphenol (APH)
One-Month Return: +10.9%
With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.
What Makes APH Stand Out?
- Impressive 47.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 62.1% over the last two years outstripped its revenue performance
- APH is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business
Amphenol’s stock price of $87.14 implies a valuation ratio of 28.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
