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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here is one stock with the fundamentals to back up its performance and two that may correct.

Two Stocks to Sell:

Allient (ALNT)

One-Month Return: +17.1%

Founded in 1962, Allient (NASDAQ: ALNT) develops and manufactures precision and specialty-controlled motion components and systems.

Why Does ALNT Give Us Pause?

1. Annual sales declines of 2.1% for the past two years show its products and services struggled to connect with the market during this cycle
2. Earnings per share have dipped by 2.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. ROIC of 8.2% reflects management’s challenges in identifying attractive investment opportunities

Allient is trading at $73 per share, or 26.1x forward P/E. Dive into our free research report to see why there are better opportunities than ALNT.

SLB (SLB)

One-Month Return: +16.7%

What began in 1926 with two brothers logging the first electrical measurements in a well, SLB (NYSE: SLB) provides technology and services to help oil and gas companies locate reservoirs, drill wells, and produce hydrocarbons.

Why Are We Wary of SLB?

1. Sales tumbled by 1.2% annually over the last ten years, showing market trends are working against its favor during this cycle
2. Gross margin of 21.5% reflects its high production costs and unfavorable asset base

SLB’s stock price of $52.19 implies a valuation ratio of 19.3x forward P/E. To fully understand why you should be careful with SLB, check out our full research report (it’s free).

One Stock to Buy:

Merck (MRK)

One-Month Return: +4.4%

With roots dating back to 1891 and a portfolio that includes the blockbuster cancer immunotherapy Keytruda, Merck (NYSE: MRK) develops and sells prescription medicines, vaccines, and animal health products across oncology, infectious diseases, cardiovascular, and other therapeutic areas.

Why Will MRK Beat the Market?

1. Enormous revenue base of $65.09 billion gives it economies of scale and advantages over new entrants due to the industry’s regulatory complexity
2. Adjusted operating margin improvement of 30.8 percentage points over the last two years demonstrates its ability to scale efficiently
3. Strong free cash flow margin of 21.5% enables it to reinvest or return capital consistently

At $120.67 per share, Merck trades at 23.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.