The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.

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

Two Stocks to Sell:

Timken (TKR)

One-Month Return: +7.3%

Established after the founder noticed the difficulty freight wagons had making sharp turns, Timken (NYSE: TKR) is a provider of industrial parts used across various sectors.

Why Should You Dump TKR?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.7%
3. Earnings per share have dipped by 11.8% annually over the past two years, which is concerning because stock prices follow EPS over the long term

At $85.81 per share, Timken trades at 15x forward P/E. Dive into our free research report to see why there are better opportunities than TKR.

Regions Financial (RF)

One-Month Return: +7.5%

Tracing its roots back to 1971 and operating in a region known as the "heart of Dixie," Regions Financial (NYSE: RF) is a financial holding company that provides banking services, wealth management, and specialty financial solutions across the South, Midwest, and Texas.

Why Is RF Not Exciting?

1. Muted 5.4% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
2. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 41 basis points (100 basis points = 1 percentage point)
3. Earnings per share were flat over the last two years and fell short of the peer group average

Regions Financial is trading at $27.24 per share, or 1.3x forward P/B. To fully understand why you should be careful with RF, check out our full research report (it’s free for active Edge members).

One Stock to Watch:

Customers Bancorp (CUBI)

One-Month Return: +7.4%

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Why Are We Positive On CUBI?

1. Impressive 14.8% annual net interest income growth over the last five years indicates it’s winning market share this cycle
2. Operating profits are forecasted to increase over the next year as it scales and becomes more productive
3. Annual tangible book value per share growth of 18.1% over the past five years was outstanding, reflecting strong capital accumulation this cycle

Customers Bancorp’s stock price of $73.41 implies a valuation ratio of 1.2x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. 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-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.