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 lasting competitive advantages and two not so much.

Two Stocks to Sell:

Tilly's (TLYS)

One-Month Return: +197%

With an emphasis on skate and surf culture, Tilly’s (NYSE: TLYS) is a specialty retailer that sells clothing, footwear, and accessories geared towards fashion-forward teens and young adults.

Why Do We Steer Clear of TLYS?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
2. Earnings per share have contracted by 55.2% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

Tilly’s stock price of $4.10 implies a valuation ratio of 92.6x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TLYS.

Bristol-Myers Squibb (BMY)

One-Month Return: -6.5%

With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE: BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.

Why Do We Think Twice About BMY?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 2.6% for the last five years
2. Efficiency has decreased over the last five years as its adjusted operating margin fell by 10.3 percentage points
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $58.32 per share, Bristol-Myers Squibb trades at 9.5x forward P/E. If you’re considering BMY for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

United Therapeutics (UTHR)

One-Month Return: +3.3%

Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ: UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.

Why Do We Love UTHR?

1. Annual revenue growth of 16.9% over the last two years was superb and indicates its market share increased during this cycle
2. Strong free cash flow margin of 34.2% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
3. Rising returns on capital show management is finding more attractive investment opportunities

United Therapeutics is trading at $530.64 per share, or 19.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.