Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. On that note, here is one stock with the fundamentals to back up its performance and two best left ignored.
Two Stocks to Sell:
Connection (CNXN)
One-Month Return: +10.3%
Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ:CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems.
Why Are We Hesitant About CNXN?
- 2.3% annual revenue growth over the last five years was slower than its business services peers
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 8.4% annually
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $94.61 per share, Connection trades at 21.4x forward P/E. If you’re considering CNXN for your portfolio, see our FREE research report to learn more.
Calumet (CLMT)
One-Month Return: +0.1%
With roots dating back to 1919 and facilities strategically positioned from Louisiana to Montana, Calumet (NASDAQ:CLMT) refines crude oil into specialty products like lubricating oils, solvents, and waxes used in cosmetics, batteries, and industrial applications.
Why Do We Think CLMT Will Underperform?
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 7.2%
- Cash-burning history makes us doubt the long-term viability of its business model
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Calumet is trading at $56.61 per share, or 23.9x forward P/E. Dive into our free research report to see why there are better opportunities than CLMT.
One Stock to Buy:
Shopify (SHOP)
One-Month Return: +33.4%
Starting with just three people selling snowboards online in 2004, Shopify (NASDAQ:SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
Why Are We Bullish on SHOP?
- Billings have averaged 33.1% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Expected revenue growth of 28.3% for the next year suggests its market share will rise
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
Shopify’s stock price of $178.60 implies a valuation ratio of 13x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.