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.

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 are two stocks with lasting competitive advantages and one not so much.

One Stock to Sell:

Selective Insurance Group (SIGI)

One-Month Return: +3.4%

Founded in 1926 during the early days of automobile insurance, Selective Insurance Group (NASDAQ: SIGI) is a property and casualty insurance company that sells commercial, personal, and excess and surplus lines insurance products through independent agents.

Why Is SIGI Not Exciting?

1. Estimated sales growth of 1.7% for the next 12 months implies demand will slow from its two-year trend
2. Efficiency has decreased over the last five years as its pre-tax profit margin fell by 3.2 percentage points
3. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 12.6% annually

Selective Insurance Group is trading at $92.64 per share, or 1.5x forward P/B. To fully understand why you should be careful with SIGI, check out our full research report (it’s free).

Two Stocks to Watch:

Dick's (DKS)

One-Month Return: +6.6%

Started as a hunting supply store, Dick’s Sporting Goods (NYSE: DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.

Why Are We Positive on DKS?

1. Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
2. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 3.6% over the past two years
3. Exciting sales outlook for the upcoming 12 months calls for 17.2% growth, an acceleration from its three-year trend

Dick’s stock price of $224.38 implies a valuation ratio of 15x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

SEI Investments (SEIC)

One-Month Return: -1.1%

Founded in 1968 as Simulated Environments Inc. to train bank loan officers using computer simulations, SEI Investments (NASDAQ: SEIC) provides technology platforms, investment management, and operational solutions for financial institutions, wealth managers, and investors.

Why Is SEIC a Good Business?

1. Annual revenue growth of 9.9% over the last two years was above the sector average and underscores its products and services value to customers
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $91.01 per share, SEI Investments trades at 15x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.