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. All that said, here is one stock with lasting competitive advantages and two that may correct.
Two Stocks to Sell:
Simmons First National (SFNC)
One-Month Return: +10.5%
With roots dating back to 1903 and a presence across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas, Simmons First National (NASDAQ:SFNC) is a regional bank holding company that provides banking and financial services to individuals and businesses.
Why Do We Steer Clear of SFNC?
- Annual net interest income growth of 4% over the last five years was below our standards for the banking sector
- Projected 18.2 percentage point efficiency ratio increase over the next year signals its day-to-day expenses will rise
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 4% annually
At $21.18 per share, Simmons First National trades at 0.9x forward P/B. To fully understand why you should be careful with SFNC, check out our full research report (it’s free).
RPC (RES)
One-Month Return: +7.1%
Operating primarily in the Permian Basin with 10 hydraulic fracturing fleets, RPC (NYSE:RES) provides specialized services and equipment like hydraulic fracturing, coiled tubing, and cementing to help oil and gas companies complete and maintain wells.
Why Do We Think Twice About RES?
- Subscale operations are evident in its revenue base of $1.63 billion, meaning it has fewer distribution channels than its larger rivals
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 28.3%
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 6.1% for the last five years
RPC’s stock price of $7.38 implies a valuation ratio of 34.9x forward P/E. If you’re considering RES for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
ESCO (ESE)
One-Month Return: +16.1%
A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO (NYSE:ESE) is a provider of engineered components for the aerospace, defense, and utility sectors.
Why Should You Buy ESE?
- Market share has increased this cycle as its 11.5% annual revenue growth over the last two years was exceptional
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 36.3% over the last two years outstripped its revenue performance
- Free cash flow margin grew by 10.9 percentage points over the last five years, giving the company more chips to play with
ESCO is trading at $311.10 per share, or 37.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.