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 are two stocks with lasting competitive advantages and one best left ignored.
One-Month Return: +11.4%
Founded in 1851, The New York Times (NYSE:NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
Why Are We Out on NYT?
Demand for its offerings was relatively low as its number of subscribers has underwhelmed
Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
The New York Times’s stock price of $63.86 implies a valuation ratio of 24.9x forward P/E. Dive into our free research report to see why there are better opportunities than NYT.
One-Month Return: +20.3%
Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.
Why Are We Bullish on GOOGL?
Alphabet’s dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin.
The company’s profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube.
Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term.
At $323.81 per share, Alphabet trades at 28.2x forward price-to-earnings. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
One-Month Return: +7.4%
With roots dating back to 1833, making it one of America’s oldest continuously operating businesses, McKesson (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.




