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 we think lives up to the hype and two best left ignored.

Two Industrials Stocks to Sell:

Sunrun (RUN)

One-Month Return: +17.2%

Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ: RUN) provides residential solar electricity, specializing in panel installation and leasing services.

Why Are We Wary of RUN?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.2% annually over the last two years
2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Sunrun is trading at $20.26 per share, or 46.8x forward P/E. To fully understand why you should be careful with RUN, check out our full research report (it’s free for active Edge members).

Installed Building Products (IBP)

One-Month Return: +6.5%

Founded in 1977, Installed Building Products (NYSE: IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction.

Why Is IBP Not Exciting?

1. 3.5% annual revenue growth over the last two years was slower than its industrials peers
2. Projected sales decline of 3.3% for the next 12 months points to a tough demand environment ahead
3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5.3% annually

At $262.76 per share, Installed Building Products trades at 26.1x forward P/E. Check out our free in-depth research report to learn more about why IBP doesn’t pass our bar.

One Industrials Stock to Watch:

Watts Water Technologies (WTS)

One-Month Return: -2.2%

Founded in 1874, Watts Water (NYSE: WTS) specializes in manufacturing water products and systems for residential, commercial, and industrial applications globally.

Why Does WTS Stand Out?

1. Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 45.5%
2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 20.7% exceeded its revenue gains over the last five years

Watts Water Technologies’s stock price of $273.15 implies a valuation ratio of 26.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

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 Exlservice (+354% 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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