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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here is one stock with lasting competitive advantages and two not so much.
Two Stocks to Sell:
Acushnet (GOLF)
One-Month Return: -2.2%
Producer of the acclaimed Titleist Pro V1 golf ball, Acushnet (NYSE: GOLF) is a design and manufacturing company specializing in performance-driven golf products.
Why Are We Out on GOLF?
- Annual revenue growth of 7.9% over the last five years was below our standards for the consumer discretionary sector
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 4.8% for the last two years
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $114.78 per share, Acushnet trades at 28.9x forward P/E. Check out our free in-depth research report to learn more about why GOLF doesn’t pass our bar.
PROG (PRG)
One-Month Return: +0.7%
Evolving from its origins as Aaron's, Inc. before rebranding in 2020, PROG Holdings (NYSE: PRG) provides alternative payment solutions including lease-to-own options and second-look credit products for consumers who may not qualify for traditional financing.
Why Do We Think PRG Will Underperform?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Earnings per share fell by 5.4% annually over the last five years while its revenue was flat, showing each sale was less profitable
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 62.4% annually over the last five years
PROG is trading at $46.42 per share, or 10.3x forward P/E. Read our free research report to see why you should think twice about including PRG in your portfolio.
One Stock to Watch:
Clean Harbors (CLH)
One-Month Return: +3.6%
Established in 1980, Clean Harbors (NYSE: CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.
Why Are We Positive on CLH?
- Annual revenue growth of 14.4% over the past five years was outstanding, reflecting market share gains this cycle
- Share buybacks catapulted its annual earnings per share growth to 24.9%, which outperformed its revenue gains over the last five years
- Free cash flow margin increased by 5.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Clean Harbors’s stock price of $310.59 implies a valuation ratio of 34x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
