The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here is one stock with lasting competitive advantages and two best left ignored.
Two Stocks to Sell:
IQVIA (IQV)
One-Month Return: +13.3%
Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE:IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.
Why Does IQV Worry Us?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 5.6% over the last five years was below our standards for the healthcare sector
- Adjusted operating margin was unchanged over the last two years, suggesting it failed to gain leverage on its fixed costs
- Free cash flow margin has stayed in place over the last five years
At $233.40 per share, IQVIA trades at 17.2x forward P/E. To fully understand why you should be careful with IQV, check out our full research report (it’s free).
Diebold Nixdorf (DBD)
One-Month Return: -7.9%
With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE:DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.
Why Do We Pass on DBD?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Earnings per share have contracted by 8.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.7% for the last five years
Diebold Nixdorf’s stock price of $77.50 implies a valuation ratio of 11.5x forward P/E. If you’re considering DBD for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
IMAX (IMAX)
One-Month Return: +37.1%
Originally developed for World Expo '67 in Montreal as an innovative projection system, IMAX (NYSE:IMAX) provides proprietary large-format cinema technology and systems that deliver immersive movie experiences with enhanced image quality and sound.
Why Are We Bullish on IMAX?
- Impressive 17.9% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Free cash flow margin jumped by 24.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
IMAX is trading at $51.20 per share, or 25.2x 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
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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.