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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here are two stocks with the fundamentals to back up their performance and one that may correct.

One Stock to Sell:

News Corp (NWSA)

One-Month Return: +7.1%

Established in 2013 after a restructuring, News Corp (NASDAQ: NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.

Why Do We Pass on NWSA?

1. Annual sales declines of 1.3% for the past five years show its products and services struggled to connect with the market
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.6%
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

At $30.89 per share, News Corp trades at 31.6x forward P/E. Check out our free in-depth research report to learn more about why NWSA doesn’t pass our bar.

Two Stocks to Buy:

ESCO (ESE)

One-Month Return: +2.9%

A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO (NYSE: ESE) is a provider of engineered components for the aerospace, defense, and utility sectors.

Why Are We Backing ESE?

1. Market share is on track to rise over the next 12 months as its 23.1% projected revenue growth implies demand will accelerate from its two-year trend
2. Superior product capabilities and pricing power result in a premier gross margin of 39.1%
3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 22.4% over the last two years outstripped its revenue performance

ESCO is trading at $206.97 per share, or 31.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

McKesson (MCK)

One-Month Return: +10.2%

With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.

Why Will MCK Outperform?

1. 15.3% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
2. Massive revenue base of $377.6 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
3. Share repurchases over the last five years enabled its annual earnings per share growth of 18.3% to outpace its revenue gains

McKesson’s stock price of $761.82 implies a valuation ratio of 19.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our 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-small-cap company Comfort Systems (+782% 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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