1 Surging Stock to Target This Week and 2 We Avoid
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. On that note, here is one stock we think lives up to the hype and two that may correct.
Two Stocks to Sell:
RingCentral (RNG)
One-Month Return: +22.2%
Built on its proprietary Message Video Phone (MVP) platform that unifies multiple communication methods, RingCentral (NYSE:RNG) provides AI-driven cloud communications and collaboration solutions that enable businesses to connect through voice, video, messaging, and contact center services.
Why Should You Sell RNG?
- Products, pricing, or go-to-market strategy may need some adjustments as its 6.5% average billings growth over the last year was weak
- Projected sales growth of 4.6% for the next 12 months suggests sluggish demand
- Operating margin expanded by 4 percentage points over the last year as it scaled and became more efficient
RingCentral’s stock price of $67.99 implies a valuation ratio of 2.2x forward price-to-sales. Read our free research report to see why you should think twice about including RNG in your portfolio.
Edgewell Personal Care (EPC)
One-Month Return: +6.8%
Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE:EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.
Why Do We Steer Clear of EPC?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs
- Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 11.3% annually, worse than its revenue
At $29.05 per share, Edgewell Personal Care trades at 12.3x forward P/E. If you’re considering EPC for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Ameriprise Financial (AMP)
One-Month Return: +2.5%
Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE:AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.
Why Will AMP Beat the Market?
- Performance over the past five years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Impressive 19.1% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Ameriprise Financial is trading at $559.34 per share, or 11.3x forward P/E. Is now the right time to buy? 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 (+1,460% 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.