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. On that note, here is one stock with lasting competitive advantages and two not so much.
Two Stocks to Sell:
UFP Industries (UFPI)
One-Month Return: +5.5%
Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ: UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.
Why Should You Sell UFPI?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 7.9% annually over the last two years
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 20.4% annually, worse than its revenue
- Diminishing returns on capital suggest its earlier profit pools are drying up
UFP Industries’s stock price of $111.38 implies a valuation ratio of 20.1x forward P/E. If you’re considering UFPI for your portfolio, see our FREE research report to learn more.
Cincinnati Financial (CINF)
One-Month Return: +1.5%
Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ: CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.
Why Does CINF Give Us Pause?
- Combined ratio failed to improve over the last two years, indicating the firm couldn’t optimize its expenses
- Earnings per share lagged its peers over the last two years as they only grew by 14.7% annually
- Estimated book value per share growth of 4.3% for the next 12 months implies profitability will slow from its two-year trend
At $163.24 per share, Cincinnati Financial trades at 1.6x forward P/B. Check out our free in-depth research report to learn more about why CINF doesn’t pass our bar.
One Stock to Watch:
McDonald's (MCD)
One-Month Return: +8%
With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE: MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.
Why Could MCD Be a Winner?
- Fast expansion of new restaurants indicates an aggressive approach to attacking untapped market opportunities
- Highly-profitable franchise model results in strong unit economics and a best-in-class gross margin of 57.1%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
McDonald's is trading at $326.99 per share, or 24.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
