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.
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 with lasting competitive advantages and two best left ignored.
Two Stocks to Sell:
Cushman & Wakefield (CWK)
One-Month Return: +6.3%
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE: CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Why Do We Pass on CWK?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Anticipated sales growth of 1.7% for the next year implies demand will be shaky
- Earnings per share fell by 4.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Cushman & Wakefield is trading at $16.80 per share, or 13x forward P/E. To fully understand why you should be careful with CWK, check out our full research report (it’s free for active Edge members).
Cadre (CDRE)
One-Month Return: +17.7%
Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Does CDRE Give Us Pause?
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 1.7 percentage points
- Flat earnings per share over the last four years lagged its peers
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7 percentage points
At $42.60 per share, Cadre trades at 29.5x forward P/E. If you’re considering CDRE for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Zscaler (ZS)
One-Month Return: +12.3%
Pioneering the "zero trust" approach that has fundamentally changed enterprise network security, Zscaler (NASDAQ: ZS) provides a cloud-based security platform that connects users, devices, and applications securely without traditional network-based security hardware.
Why Is ZS a Good Business?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Estimated revenue growth of 22.6% for the next 12 months implies its momentum over the last two years will continue
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Zscaler’s stock price of $319.50 implies a valuation ratio of 15.2x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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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