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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. On that note, here is one stock we think lives up to the hype and two that may correct.
Two Stocks to Sell:
Wintrust Financial (WTFC)
One-Month Return: -1.4%
Founded in 1991 as a community-focused alternative to big banks in the Chicago area, Wintrust Financial (NASDAQGS:WTFC) operates community banks in the Chicago area and provides specialty finance services including insurance premium financing and wealth management.
Why Does WTFC Worry Us?
- Net interest margin increased by 5.2 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
Wintrust Financial’s stock price of $159.18 implies a valuation ratio of 1.5x forward P/B. If you’re considering WTFC for your portfolio, see our FREE research report to learn more.
M&T Bank (MTB)
One-Month Return: +4.3%
Tracing its roots back to 1856 when it was founded as Manufacturers and Traders Bank in Buffalo, New York, M&T Bank (NYSE:MTB) is a regional bank holding company that provides retail and commercial banking, trust, wealth management, and investment services to consumers and businesses.
Why Are We Wary of MTB?
- Muted 3.8% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Estimated net interest income growth of 3.2% for the next 12 months implies demand will slow from its five-year trend
- Projected tangible book value per share growth of 8.2% for the next 12 months suggests sluggish capital generation
M&T Bank is trading at $250.07 per share, or 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than MTB.
One Stock to Buy:
WisdomTree (WT)
One-Month Return: +16.2%
Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE:WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.
Why Is WT a Top Pick?
- Annual revenue growth of 25.9% over the past two years was outstanding, reflecting market share gains this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 16.3% return on equity demonstrates management’s skill in finding high-return investments
At $21.48 per share, WisdomTree trades at 18.2x forward P/E. Is now the time to initiate a position? Find out in our full 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 (+1,460% 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.