1 Mooning Stock on Our Buy List and 2 We Ignore

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 best left ignored.

Two Stocks to Sell:

onsemi (ON)

One-Month Return: +60.8%

Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ:ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.

Why Is ON Not Exciting?

1. Annual sales declines of 14.8% for the past two years show its products and services struggled to connect with the market during this cycle
2. Anticipated sales growth of 5.2% for the next year implies demand will be shaky
3. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 17.7 percentage points

At $100.01 per share, onsemi trades at 33.8x forward P/E. Check out our free in-depth research report to learn more about why ON doesn’t pass our bar.

First American Financial (FAF)

One-Month Return: +18.8%

Tracing its roots back to 1889 when California was experiencing its first major real estate boom, First American Financial (NYSE:FAF) provides title insurance, settlement services, and risk solutions for residential and commercial real estate transactions across the United States and internationally.

Why Does FAF Worry Us?

1. Net premiums earned plateaued over the last five years, signaling weak incremental demand for its insurance policies
2. Earnings per share lagged its peers over the last five years as they only grew by 1.4% annually
3. Capital trends were unexciting over the last five years as its 3.6% annual book value per share growth was below the typical insurance firm

First American Financial is trading at $70.44 per share, or 1.2x forward P/B. To fully understand why you should be careful with FAF, check out our full research report (it’s free).

One Stock to Buy:

Quanta (PWR)

One-Month Return: +29.7%

A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.

Why Are We Backing PWR?

1. Demand is greater than supply as the company’s 21.2% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
2. Expected revenue growth of 19.5% for the next year suggests its market share will rise
3. Earnings per share have massively outperformed its peers over the last two years, increasing by 26% annually

Quanta’s stock price of $726.65 implies a valuation ratio of 45.7x 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

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.