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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here are two stocks with lasting competitive advantages and one best left ignored.
One Stock to Sell:
The New York Times (NYT)
One-Month Return: +11.4%
Founded in 1851, The New York Times (NYSE:NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
Why Are We Out on NYT?
- Demand for its offerings was relatively low as its number of subscribers has underwhelmed
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
The New York Times’s stock price of $63.86 implies a valuation ratio of 24.9x forward P/E. If you’re considering NYT for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Alphabet (GOOGL)
One-Month Return: +20.3%
Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.
Why Are We Bullish on GOOGL?
- Alphabet’s dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin.
- The company’s profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube.
- Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term.
At $323.81 per share, Alphabet trades at 28.2x forward price-to-earnings. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
McKesson (MCK)
One-Month Return: +7.4%
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Do We Love MCK?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 15.3% annual sales growth over the last two years
- Dominant market position is represented by its $387.1 billion in revenue, which creates significant barriers to entry in this highly regulated industry
- Share repurchases over the last five years enabled its annual earnings per share growth of 18.3% to outpace its revenue gains
McKesson is trading at $871.49 per share, or 21.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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