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.
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 that may correct.
One Stock to Sell:
Steven Madden (SHOO)
One-Month Return: +6.7%
As seen in the infamous Wolf of Wall Street movie, Steven Madden (NASDAQ: SHOO) is a fashion brand famous for its trendy and innovative footwear, appealing to a young and style-conscious audience.
Why Do We Steer Clear of SHOO?
- Muted 13.2% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Steven Madden’s stock price of $45.44 implies a valuation ratio of 21.6x forward P/E. Dive into our free research report to see why there are better opportunities than SHOO.
Two Stocks to Buy:
Micron (MU)
One-Month Return: +32.2%
Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE: MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.
Why Is MU a Top Pick?
- Annual revenue growth of 61.7% over the last two years was superb and indicates its market share increased during this cycle
- Projected revenue growth of 102% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share have massively outperformed its peers over the last five years, increasing by 29.2% annually
At $389.10 per share, Micron trades at 10.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Rollins (ROL)
One-Month Return: +4.5%
Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE: ROL) provides pest and wildlife control services to residential and commercial customers.
Why Are We Bullish on ROL?
- Annual revenue growth of 11.5% over the past five years was outstanding, reflecting market share gains this cycle
- Superior product capabilities and pricing power lead to a best-in-class gross margin of 52.3%
- Strong free cash flow margin of 16.5% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
Rollins is trading at $63.50 per share, or 50.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
