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 are two stocks we think live up to the hype and one best left ignored.
One Stock to Sell:
Levi's (LEVI)
One-Month Return: +12.8%
Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE: LEVI) is an apparel company renowned for its iconic denim products and classic American style.
Why Do We Pass on LEVI?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Projected sales growth of 2.6% for the next 12 months suggests sluggish demand
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Levi's is trading at $22.55 per share, or 17.7x forward P/E. Read our free research report to see why you should think twice about including LEVI in your portfolio.
Two Stocks to Watch:
LegalZoom (LZ)
One-Month Return: +31.7%
Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ: LZ) offers online legal services and documentation assistance for individuals and businesses.
Why Are We Fans of LZ?
- Has the opportunity to boost monetization through new features and premium offerings as its subscription units have grown by 11.7% annually over the last two years
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin grew by 14.9 percentage points over the last few years, giving the company more chips to play with
At $10.93 per share, LegalZoom trades at 11x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
American Express (AXP)
One-Month Return: +11.4%
Recognizable by its iconic green logo and the slogan "Don't leave home without it," American Express (NYSE: AXP) is a global payments company that issues credit and charge cards, processes merchant transactions, and offers travel and lifestyle benefits to consumers and businesses.
Why Are We Backing AXP?
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 24.3% exceeded its revenue gains over the last five years
- Balance sheet strength has increased this cycle as its 13.1% annual tangible book value per share growth over the last two years was exceptional
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
American Express’s stock price of $330.50 implies a valuation ratio of 20.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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