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.

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 lasting competitive advantages and two not so much.

Two Stocks to Sell:

Astec (ASTE)

One-Month Return: +8.1%

Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ: ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.

Why Are We Wary of ASTE?

1. Backlog has dropped by 28.2% on average over the past two years, suggesting it’s losing orders as competition picks up
2. Gross margin of 23.9% is below its competitors, leaving less money to invest in areas like marketing and R&D
3. Cash burn makes us question whether it can achieve sustainable long-term growth

Astec is trading at $47.60 per share, or 14.9x forward P/E. Read our free research report to see why you should think twice about including ASTE in your portfolio.

Huntington Ingalls (HII)

One-Month Return: +19.9%

Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls (NYSE: HII) develops marine vessels and their mission systems and maintenance services.

Why Do We Think HII Will Underperform?

1. Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 4.9% for the past two years was weak
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 1.1% annually while its revenue grew
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Huntington Ingalls’s stock price of $377.64 implies a valuation ratio of 21.5x forward P/E. Dive into our free research report to see why there are better opportunities than HII.

One Stock to Watch:

Viasat (VSAT)

One-Month Return: +7.1%

Operating a fleet of 23 satellites that orbit the Earth and beam connectivity from space, Viasat (NASDAQ: VSAT) provides satellite-based communications networks and services for airlines, maritime vessels, governments, businesses, and residential customers worldwide.

Why Do We Watch VSAT?

1. Impressive 17.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Economies of scale give it more fixed cost leverage than its smaller competitors
3. Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate

At $38.68 per share, Viasat trades at 74.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.