Nasdaq
华尔街日报1 Surging Stock to Target This Week 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. All that said, here is one stock with the fundamentals to back up its performance and two that may correct.
Two Stocks to Sell:
Timken (TKR)
One-Month Return: +7.3%
Established after the founder noticed the difficulty freight wagons had making sharp turns, Timken (NYSE:TKR) is a provider of industrial parts used across various sectors.
Why Should You Dump TKR?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.7%
- Earnings per share have dipped by 11.8% annually over the past two years, which is concerning because stock prices follow EPS over the long term
At $85.81 per share, Timken trades at 15x forward P/E. Dive into our free research report to see why there are better opportunities than TKR.
Regions Financial (RF)
One-Month Return: +7.5%
Tracing its roots back to 1971 and operating in a region known as the "heart of Dixie," Regions Financial (NYSE:RF) is a financial holding company that provides banking services, wealth management, and specialty financial solutions across the South, Midwest, and Texas.
Why Is RF Not Exciting?
- Muted 5.4% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 41 basis points (100 basis points = 1 percentage point)
- Earnings per share were flat over the last two years and fell short of the peer group average
Regions Financial is trading at $27.24 per share, or 1.3x forward P/B. To fully understand why you should be careful with RF, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Customers Bancorp (CUBI)
One-Month Return: +7.4%
Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE:CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.
Why Are We Positive On CUBI?
- Impressive 14.8% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Operating profits are forecasted to increase over the next year as it scales and becomes more productive
- Annual tangible book value per share growth of 18.1% over the past five years was outstanding, reflecting strong capital accumulation this cycle
Customers Bancorp’s stock price of $73.41 implies a valuation ratio of 1.2x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. 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).
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