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. On that note, here is one stock we think lives up to the hype and two not so much.
Two Stocks to Sell:
Steelcase (SCS)
One-Month Return: +5.9%
Founded in 1912 when metal office furniture was replacing wooden alternatives, Steelcase (NYSE: SCS) is a global office furniture manufacturer that designs and produces workplace solutions including desks, chairs, architectural products, and services.
Why Are We Out on SCS?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Low free cash flow margin of 1.3% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Underwhelming 7.1% return on capital reflects management’s difficulties in finding profitable growth opportunities
Steelcase is trading at $17 per share, or 15.3x forward P/E. To fully understand why you should be careful with SCS, check out our full research report (it’s free).
Allegion (ALLE)
One-Month Return: +5.3%
Allegion plc (NYSE: ALLE) is a provider of security products and solutions that keep people and assets safe and secure in various environments.
Why Do We Think Twice About ALLE?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Free cash flow margin dropped by 2.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Allegion’s stock price of $176.05 implies a valuation ratio of 21.8x forward P/E. If you’re considering ALLE for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
American Superconductor (AMSC)
One-Month Return: +6.3%
Founded in 1987, American Superconductor (NASDAQ: AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
Why Should You Buy AMSC?
- Annual revenue growth of 49.8% over the last two years was superb and indicates its market share increased during this cycle
- Free cash flow profile has moved into positive territory over the last five years, showing the company is at an important crossroads
- Improving returns on capital suggest its past investments are beginning to deliver value
At $56.85 per share, American Superconductor trades at 99.2x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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