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 not so much.
One Stock to Sell:
News Corp (NWSA)
One-Month Return: +4.1%
Established in 2013 after a restructuring, News Corp (NASDAQ: NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
Why Should You Sell NWSA?
- Annual sales declines of 2.5% for the past five years show its products and services struggled to connect with the market
- Projected sales growth of 2.5% for the next 12 months suggests sluggish demand
- Underwhelming 6.3% return on capital reflects management’s difficulties in finding profitable growth opportunities
News Corp’s stock price of $29.40 implies a valuation ratio of 32.9x forward P/E. To fully understand why you should be careful with NWSA, check out our full research report (it’s free).
Two Stocks to Watch:
Cencora (COR)
One-Month Return: -0.4%
Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE: COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.
Why Do We Love COR?
- Unparalleled scale of $310.2 billion in revenue enables it to spread administrative costs across a larger membership base
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 14.5% exceeded its revenue gains over the last five years
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Cencora is trading at $292.32 per share, or 18.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Royalty Pharma (RPRX)
One-Month Return: +9.8%
Pioneering a unique business model in the pharmaceutical industry since 1996, Royalty Pharma (NASDAQ: RPRX) acquires rights to receive portions of sales from successful biopharmaceutical products, providing funding to drug developers without conducting research itself.
Why Are We Fans of RPRX?
- Projected revenue growth of 22.4% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Efficiency rose over the last two years as its Adjusted operating margin increased by 60 percentage points
- Free cash flow margin jumped by 28.7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $35.90 per share, Royalty Pharma trades at 7.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 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 Kadant (+351% 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
