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.
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 is one stock with the fundamentals to back up its performance and two best left ignored.
Two stocks to sell:
Manhattan Associates (MANH)
One-month return: +23.1%
Built on a "versionless" cloud architecture that delivers quarterly updates to all customers, Manhattan Associates (NASDAQ:MANH) develops cloud-based software that helps retailers, wholesalers, and manufacturers manage their supply chains, inventory, and omnichannel operations.
Why Are We Cautious About MANH?
- Average billings growth of 10.9% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Sky-high servicing costs result in an inferior gross margin of 57% that must be offset through increased usage
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 1.5 percentage points
Manhattan Associates is trading at $253.01 per share, or 11.7x forward price-to-sales. Read our free research report to see why you should think twice about including MANH in your portfolio.
Prosperity Bancshares (PB)
One-month return: +9.6%
With a network of banking centers spanning the Lone Star State and beyond, Prosperity Bancshares (NYSE:PB) operates full-service banking locations throughout Texas and Oklahoma, offering a wide range of financial products and services to businesses and consumers.
Why Do We Think Twice About PB?
- Muted 6.4% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Annual earnings per share growth of 1.8% underperformed its revenue over the last five years, showing its incremental sales were less profitable
- Flat tangible book value per share over the last two years suggests it must find different ways to enhance shareholder value during this cycle
Prosperity Bancshares’s stock price of $73.69 implies a valuation ratio of 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than PB.
One stock to watch:
Kinder Morgan (KMI)
One-month return: +4.7%
Operating what amounts to the toll roads of the energy industry, Kinder Morgan (NYSE:KMI) transports natural gas, refined petroleum products, and crude oil through its pipeline network across North America.
Why Do We Watch KMI?
- Unparalleled revenue scale of $18.34 billion gives it advantageous pricing and terms with suppliers
- EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- KMI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $32.89 per share, Kinder Morgan trades at 21.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks we like even more
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.