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 with lasting competitive advantages and two not so much.
Two Industrials Stocks to Sell:
Alamo (ALG)
One-Month Return: +8.2%
Expanding its markets through acquisitions since its founding, Alamo (NSYE:ALG) designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use.
Why Do We Avoid ALG?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Projected sales growth of 2.8% for the next 12 months suggests sluggish demand
- Flat earnings per share over the last two years underperformed the sector average
Alamo’s stock price of $207.16 implies a valuation ratio of 20.3x forward P/E. Read our free research report to see why you should think twice about including ALG in your portfolio.
Lindsay (LNN)
One-Month Return: +0.6%
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services.
Why Are We Cautious About LNN?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
At $134.89 per share, Lindsay trades at 21.9x forward P/E. If you’re considering LNN for your portfolio, see our FREE research report to learn more.
One Industrials Stock to Buy:
Rollins (ROL)
One-Month Return: +1.9%
Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE:ROL) provides pest and wildlife control services to residential and commercial customers.
Why Should You Buy ROL?
- Annual revenue growth of 11.9% over the last two years was superb and indicates its market share increased during this cycle
- Offerings are mission-critical for businesses and lead to a best-in-class gross margin of 52.1%
- Strong free cash flow margin of 16.7% enables it to reinvest or return capital consistently
Rollins is trading at $57.77 per share, or 50.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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.