1 Mooning Stock on Our Watchlist and 2 Facing Headwinds

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.

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 the fundamentals to back up its performance and two not so much.

Two Stocks to Sell:

Viking (VIK)

One-Month Return: +12.9%

From a single river cruise offering to a fleet of 96 vessels across multiple continents, Viking (NYSE:VIK) operates a fleet of small luxury cruise ships offering river, ocean, and expedition voyages focused on cultural enrichment and destination immersion.

Why Do We Think VIK Will Underperform?

1. Muted 17.5% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
2. Poor expense management has led to an operating margin of 21.8% that is below the industry average
3. Poor free cash flow margin of 22.8% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Viking’s stock price of $77.14 implies a valuation ratio of 23.5x forward P/E. Read our free research report to see why you should think twice about including VIK in your portfolio.

United Natural Foods (UNFI)

One-Month Return: +11.1%

With a vast network of 55 distribution centers spanning approximately 30 million square feet of warehouse space, United Natural Foods (NYSE:UNFI) is North America's premier grocery wholesaler distributing natural, organic, and conventional products to over 30,000 retail locations across the US and Canada.

Why Do We Avoid UNFI?

1. Annual sales growth of 1.8% over the last three years lagged behind its consumer staples peers as its large revenue base made it difficult to generate incremental demand
2. Earnings per share fell by 29.3% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable
3. High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate

United Natural Foods is trading at $46.27 per share, or 16.4x forward P/E. If you’re considering UNFI for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

BWX (BWXT)

One-Month Return: +18.7%

Contributing components and materials to the famous Manhattan Project in the 1940s, BWX (NYSE:BWXT) is a manufacturer and service provider of nuclear components and fuel for government and commercial industries.

Why Should BWXT Be on Your Watchlist?

1. Annual revenue growth of 13.2% over the last two years was superb and indicates its market share increased during this cycle
2. Exciting sales outlook for the upcoming 12 months calls for 17.6% growth, an acceleration from its two-year trend
3. Free cash flow margin jumped by 5.7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $230.50 per share, BWX trades at 50x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.