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. Keeping that in mind, here is one stock with lasting competitive advantages and two that may correct.
Two Stocks to Sell:
General Motors (GM)
One-Month Return: +17.5%
Founded in 1908 by William C. Durant, General Motors (NYSE: GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.
Why Does GM Worry Us?
- Disappointing unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Sales are projected to tank by 1.4% over the next 12 months as demand evaporates
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 12%
General Motors’s stock price of $68.36 implies a valuation ratio of 6.3x forward P/E. If you’re considering GM for your portfolio, see our FREE research report to learn more.
Scorpio Tankers (STNG)
One-Month Return: +9.6%
Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.
Why Are We Wary of STNG?
- Annual sales declines of 2.9% for the past five years show its products and services struggled to connect with the market during this cycle
- Number of total vessels has disappointed over the past two years, indicating weak demand for its offerings
- Earnings per share have contracted by 29.6% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
Scorpio Tankers is trading at $61.62 per share, or 7.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than STNG.
One Stock to Watch:
Veeva Systems (VEEV)
One-Month Return: -2.3%
Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems (NYSE: VEEV) provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.
Why Could VEEV Be a Winner?
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Highly efficient business model is illustrated by its impressive 26.9% operating margin, and it turbocharged its profits by achieving some fixed cost leverage
- VEEV is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $292.72 per share, Veeva Systems trades at 14.8x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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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