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1 Momentum Stock to Research Further and 2 We Find Risky
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. On that note, here is one stock with lasting competitive advantages and two best left ignored.
Two Stocks to Sell:
Northern Trust (NTRS)
One-Month Return: +2%
Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ:NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.
Why Are We Wary of NTRS?
- Annual revenue growth of 6.9% over the last five years was below our standards for the financials sector
At $184.46 per share, Northern Trust trades at 15.8x forward P/E. Check out our free in-depth research report to learn more about why NTRS doesn’t pass our bar.
TowneBank (TOWN)
One-Month Return: -3.2%
Founded in 1998 with a commitment to community-centered banking in the Hampton Roads region, TowneBank (NASDAQ:TOWN) is a community-focused financial institution providing banking, lending, and wealth management services to individuals and businesses in Virginia and North Carolina.
Why Are We Hesitant About TOWN?
- Muted 5.6% annual revenue growth over the last five years shows its demand lagged behind its banking peers
- Costs have risen faster than its revenue over the last five years, causing its efficiency ratio to worsen by 16.1 percentage points
- Annual earnings per share growth of 1.3% underperformed its revenue over the last five years, showing its incremental sales were less profitable
TowneBank’s stock price of $37.39 implies a valuation ratio of 1.1x forward P/B. If you’re considering TOWN for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Helmerich & Payne (HP)
One-Month Return: +28.8%
Operating the largest fleet of super-spec rigs in North America with technology that can drill horizontal wells over two miles long, Helmerich & Payne (NYSE:HP) provides drilling rigs and crews to oil and gas companies that need wells drilled to extract hydrocarbons from underground.
Why Do We Watch HP?
- Market share has increased this cycle as its 30.3% annual revenue growth over the last five years was exceptional
- Economies of scale give it some operating leverage when demand rises
- EBITDA profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
Helmerich & Payne is trading at $42.63 per share, or 29.9x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.