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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here are two stocks with lasting competitive advantages and one not so much.
One Stock to Sell:
Amentum (AMTM)
One-Month Return: +0.6%
With operations spanning approximately 80 countries and a workforce of specialized engineers and technical experts, Amentum Holdings (NYSE: AMTM) provides advanced engineering and technology solutions to U.S. government agencies, allied governments, and commercial enterprises across defense, energy, and space sectors.
Why Do We Think Twice About AMTM?
- 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 2.4% for the last three years
- Sales are projected to tank by 1.6% over the next 12 months as demand evaporates
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $30.17 per share, Amentum trades at 12.3x forward P/E. Check out our free in-depth research report to learn more about why AMTM doesn’t pass our bar.
Two Stocks to Watch:
Upwork (UPWK)
One-Month Return: +6.8%
Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ: UPWK) is an online platform where businesses and independent professionals connect to get work done.
Why Do We Like UPWK?
- Customers are spending more money on its platform as its average revenue per customer has increased by 9.4% annually over the last two years
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 123% over the last three years outstripped its revenue performance
- Free cash flow margin expanded by 29.3 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Upwork’s stock price of $21.03 implies a valuation ratio of 11.3x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Brink's (BCO)
One-Month Return: +5.7%
Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE: BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide.
Why Does BCO Stand Out?
- Economies of scale give it some operating leverage when demand rises
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 19.9% exceeded its revenue gains over the last five years
- Rising returns on capital show management is finding more attractive investment opportunities
Brink's is trading at $119.04 per share, or 13.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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 Kadant (+351% 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.
