2 Surging Stocks on Our Buy List and 1 Facing Challenges
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 are two stocks we think live up to the hype and one that may correct.
One Stock to Sell:
Flagstar Financial (FLG)
One-Month Return: +6.4%
Tracing its roots back to 1859 and rebranded from New York Community Bancorp in 2024, Flagstar Financial 
FLG is a bank holding company that offers commercial and consumer banking services, with specialties in multi-family lending, mortgage originations, and warehouse lending.
Why Do We Steer Clear of FLG?
- Sales tumbled by 9.3% annually over the last two years, showing market trends are working against its favor during this cycle
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 21% annually while its revenue grew
- Tangible book value per share tumbled by 6.7% annually over the last five years, showing banking sector trends are working against its favor during this cycle
At $12.70 per share, Flagstar Financial trades at 0.7x forward P/B. Check out our free in-depth research report to learn more about why FLG doesn’t pass our bar.
Two Stocks to Buy:
Howmet (HWM)
One-Month Return: +8.6%
Inventing the first forged aluminum truck wheel, Howmet 
HWM specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Why Will HWM Outperform?
- Market share has increased this cycle as its 11.6% annual revenue growth over the last two years was exceptional
- Share repurchases over the last two years enabled its annual earnings per share growth of 41.9% to outpace its revenue gains
- Free cash flow margin increased by 11.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Howmet’s stock price of $186 implies a valuation ratio of 49x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Houlihan Lokey (HLI)
One-Month Return: +7.6%
Founded in 1972 and known for its expertise in complex financial situations, Houlihan Lokey 
HLI is a global investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory services.
Why Is HLI a Good Business?
- Annual revenue growth of 17.2% over the last five years was superb and indicates its market share increased during this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 29% over the last two years outstripped its revenue performance
- Annual tangible book value per share growth of 43.7% over the last two years was superb and indicates its capital strength increased during this cycle
Houlihan Lokey is trading at $205.19 per share, or 26.8x 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
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-micro-cap company Kadant (+351% five-year return).
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