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. All that said, here is one stock we think lives up to the hype and two that may correct.

Two Stocks to Sell:

Deere (DE)

One-Month Return: +13.3%

Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE: DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.

Why Should You Sell DE?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 14.5% annually over the last two years
2. Diminishing returns on capital suggest its earlier profit pools are drying up
3. High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Deere’s stock price of $531.16 implies a valuation ratio of 30.5x forward P/E. Read our free research report to see why you should think twice about including DE in your portfolio.

Citigroup (C)

One-Month Return: -3.2%

With operations in nearly 160 countries and a history dating back to 1812, Citigroup (NYSE: C) is a global financial services company that provides banking, investment, wealth management, and payment solutions to consumers, corporations, and governments.

Why Do We Think Twice About C?

1. Large revenue base makes it harder to expand quickly, and its annual net interest income growth of 6% over the last five years was below our standards for the banking sector
2. Inferior net interest margin of 2.4% means it must compensate for lower profitability through increased loan originations
3. Large asset base makes it harder to grow tangible book value per share quickly, and its annual tangible book value per share growth of 6.1% over the last two years was below our standards for the banking sector

At $114.28 per share, Citigroup trades at 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than C.

One Stock to Watch:

The Ensign Group (ENSG)

One-Month Return: -0.5%

Founded in 1999 and named after a naval term for a flag-bearing ship, The Ensign Group (NASDAQ: ENSG) operates skilled nursing facilities, senior living communities, and rehabilitation services across 15 states, primarily serving high-acuity patients recovering from various medical conditions.

Why Could ENSG Be a Winner?

1. Unit sales averaged 11.8% growth over the past two years and imply healthy demand for its products
2. Market share is on track to rise over the next 12 months as its 22.8% projected revenue growth implies demand will accelerate from its two-year trend
3. Earnings growth has trumped its peers over the last five years as its EPS has compounded at 15.5% annually

The Ensign Group is trading at $178.21 per share, or 25x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.