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 are two stocks with the fundamentals to back up their performance and one best left ignored.
One Stock to Sell:
Pediatrix Medical Group (MD)
One-Month Return: +9.9%
With a network of approximately 2,620 affiliated physicians caring for some of the most vulnerable patients, Pediatrix Medical Group (NYSE:MD) provides specialized physician services focused on neonatal, maternal-fetal, pediatric cardiology and other pediatric subspecialty care across 37 states.
Why Do We Pass on MD?
- Poor comparable store sales performance over the past two years indicates it’s having trouble bringing new patients into its facilities
- Projected sales decline of 1.5% over the next 12 months indicates demand will continue deteriorating
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Pediatrix Medical Group is trading at $17.83 per share, or 9.9x forward P/E. If you’re considering MD for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
RBC Bearings (RBC)
One-Month Return: +8.2%
With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE:RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.
Why Should RBC Be on Your Watchlist?
- Annual revenue growth of 18.9% over the past five years was outstanding, reflecting market share gains this cycle
- Projected revenue growth of 14.5% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Healthy operating margin of 20.2% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
At $416 per share, RBC Bearings trades at 34.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
HCI Group (HCI)
One-Month Return: +12.9%
Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE:HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.
Why Is HCI a Good Business?
- Net premiums earned expanded by 26.7% annually over the last two years, demonstrating exceptional market penetration this cycle
- Annual book value per share growth of 63.4% over the last two years was superb and indicates its capital strength increased during this cycle
- Book value per share outlook for the upcoming 12 months is outstanding and shows it’s on track to build significant equity value
HCI Group’s stock price of $210.99 implies a valuation ratio of 3.1x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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-small-cap company Comfort Systems (+782% 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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