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.
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 that may correct.
Two Stocks to Sell:
Kimball Electronics (KE)
One-Month Return: +15.5%
Founded in 1961, Kimball Electronics (NYSE:KE) is a global contract manufacturer specializing in electronics and manufacturing solutions for automotive, medical, and industrial markets.
Why Is KE Risky?
- Sales tumbled by 9.7% annually over the last two years, showing market trends are working against its favor during this cycle
- Gross margin of 8.1% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Earnings per share have contracted by 29.1% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
Kimball Electronics’s stock price of $31.48 implies a valuation ratio of 31.3x forward P/E. Dive into our free research report to see why there are better opportunities than KE.
Horace Mann Educators (HMN)
One-Month Return: +2.3%
Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE:HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.
Why Do We Pass on HMN?
- Growth in insurance policies was lackluster over the last five years as its 5.4% annual growth underperformed the typical financial institution
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 3.4% annually over the last five years
- Underwhelming 6.3% return on equity reflects management’s difficulties in finding profitable growth opportunities
Horace Mann Educators is trading at $45.68 per share, or 1.3x forward P/B. Read our free research report to see why you should think twice about including HMN in your portfolio.
One Stock to Buy:
Nicolet Bankshares (NIC)
One-Month Return: +1.2%
Starting as Green Bay Financial Corporation in 2000 before rebranding in 2002, Nicolet Bankshares (NYSE:NIC) is a regional bank holding company that provides commercial, agricultural, and consumer banking services primarily in Wisconsin, Michigan, and Minnesota.
Why Should You Buy NIC?
- Annual net interest income growth of 18.4% over the last five years was superb and indicates its market share increased during this cycle
- Net interest margin increased by 40.3 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
- Earnings per share grew by 14.9% annually over the last two years, massively outpacing its peers
At $132.45 per share, Nicolet Bankshares trades at 1.6x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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