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.
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 is one stock we think lives up to the hype and two that may correct.
Two Stocks to Sell:
Republic Services (RSG)
One-Month Return: +4.8%
Processing several million tons of recyclables annually, Republic (NYSE:RSG) provides waste management services for residences, companies, and municipalities.
Why Does RSG Fall Short?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 4.2% for the last two years
- Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Anticipated sales growth of 4.8% for the next year implies demand will be shaky
At $225.55 per share, Republic Services trades at 29.2x forward P/E. Read our free research report to see why you should think twice about including RSG in your portfolio.
City Holding (CHCO)
One-Month Return: -0.5%
With roots dating back to 1957 and a strategic presence along the I-64 and I-81 corridors, City Holding (NASDAQGS:CHCO) operates as a financial holding company providing banking, trust, and investment services through its subsidiary City National Bank across West Virginia, Kentucky, Virginia, and Ohio.
Why Are We Cautious About CHCO?
- Annual net interest income growth of 9.8% over the last five years was below our standards for the banking sector
- Estimated net interest income growth of 3.2% for the next 12 months implies demand will slow from its five-year trend
- Earnings per share lagged its peers over the last two years as they only grew by 8.6% annually
City Holding is trading at $144.98 per share, or 2.4x forward P/B. Check out our free in-depth research report to learn more about why CHCO doesn’t pass our bar.
One Stock to Watch:
NMI Holdings (NMIH)
One-Month Return: -3.1%
Founded in the aftermath of the 2008 housing crisis to bring new capacity to the mortgage insurance market, NMI Holdings (NASDAQ:NMIH) provides mortgage insurance that protects lenders against losses when homebuyers default on their mortgage loans.
Why Are We Positive on NMIH?
- Pre-tax profit margin improvement of 13.8 percentage points over the last five years demonstrates its ability to scale efficiently
- Impressive 16.1% annual book value per share growth over the last five years indicates it’s building equity value this cycle
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
NMI Holdings’s stock price of $44.14 implies a valuation ratio of 1.1x forward P/B. Is now the time to initiate a position? Find out in our full 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.