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2 Surging Stocks on Our Watchlist and 1 We Brush Off
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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here are two stocks with the fundamentals to back up their performance and one that may correct.
One Stock to Sell:
Archer-Daniels-Midland (ADM)
One-Month Return: +6.6%
Transforming crops from the world's most productive agricultural regions into everyday essentials, Archer-Daniels-Midland (NYSE:ADM) processes and transports agricultural commodities like grains and oilseeds while manufacturing ingredients for food, beverages, feed, and industrial applications.
Why Are We Wary of ADM?
- Products aren’t resonating with the market as its revenue declined by 6.3% annually over the last three years
- Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 6.6% that must be offset through higher volumes
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
Archer-Daniels-Midland’s stock price of $87.90 implies a valuation ratio of 14.2x forward P/E. Check out our free in-depth research report to learn more about why ADM doesn’t pass our bar.
Two Stocks to Watch:
GitLab (GTLB)
One-Month Return: +20.8%
With its all-remote workforce pioneering a new approach to software development, GitLab (NASDAQ:GTLB) provides a single-application DevSecOps platform that helps development, operations, and security teams collaborate to build, secure, and deploy software faster.
Why Are We Fans of GTLB?
- Market share has increased as its 25.9% annual revenue growth over the last two years was exceptional
- Customers view its software as mission-critical to their operations as its ARR has averaged 23.3% growth over the last year
- Software is difficult to replicate at scale and leads to a best-in-class gross margin of 85.9%
GitLab is trading at $50.15 per share, or 6.8x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Elevance Health (ELV)
One-Month Return: +4.6%
Formerly known as Anthem until its 2022 rebranding, Elevance Health (NYSE:ELV) is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.
Why Could ELV Be a Winner?
- Massive revenue base of $198.7 billion gives it meaningful leverage when negotiating reimbursement rates
- Earnings per share grew by 7.2% annually over the last five years, above the peer group average
- ROIC punches in at 26%, illustrating management’s expertise in identifying profitable investments
At $416.45 per share, Elevance Health trades at 15.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.