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. On that note, here is one stock with lasting competitive advantages and two best left ignored.
Two Stocks to Sell:
Brighthouse Financial (BHF)
One-Month Return: -1.1%
Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial (NASDAQ:BHF) provides annuity contracts and life insurance products designed to help individuals protect wealth, generate income, and transfer assets.
Why Do We Pass on BHF?
- 1.4% annual declines in net premiums earned for the past five years indicates policy sales struggled this cycle
- Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 11.1% annually over the last five years
- High debt-to-equity ratio of 1.3× shows the firm carries too much debt relative to shareholder equity, increasing bankruptcy risk
Brighthouse Financial’s stock price of $64.18 implies a valuation ratio of 0.8x forward P/B. Check out our free in-depth research report to learn more about why BHF doesn’t pass our bar.
Hilltop Holdings (HTH)
One-Month Return: +6.5%
Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings (NYSE:HTH) is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.
Why Is HTH Risky?
- Net interest income was flat over the last five years, indicating it’s failed to expand this cycle
- Projected 32.9 percentage point efficiency ratio increase over the next year signals its day-to-day expenses will rise
- Sales were less profitable over the last five years as its earnings per share fell by 13.1% annually, worse than its revenue declines
At $36.85 per share, Hilltop Holdings trades at 1x forward P/B. To fully understand why you should be careful with HTH, check out our full research report (it’s free).
One Stock to Watch:
Globus Medical (GMED)
One-Month Return: +6%
With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE:GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.
Why Do We Like GMED?
- Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
- Forecasted revenue growth of 12.6% for the next 12 months indicates its momentum over the last two years is sustainable
- Earnings per share have massively outperformed its peers over the last five years, increasing by 21.6% annually
Globus Medical is trading at $94.75 per share, or 22.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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.