1 Surging Stock with Solid Fundamentals and 2 We Brush Off

The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here is one stock with lasting competitive advantages and two that may correct.

One-Month Return: +5.7%

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Why Does GLDD Worry Us?

1. Backlog growth averaged a weak 4.2% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy

2. Gross margin of 16.9% is below its competitors, leaving less money to invest in areas like marketing and R&D

3. Cash-burning history makes us doubt the long-term viability of its business model

Great Lakes Dredge & Dock’s stock price of $11.66 implies a valuation ratio of 13.2x forward P/E. To fully understand why you should be careful with GLDD, check out our full research report (it’s free for active Edge members).

One-Month Return: +8%

Founded during the Roaring Twenties in 1923 and weathering nearly a century of economic cycles, Old Republic International (NYSE:ORI) is a diversified insurance holding company that provides property, liability, title, and mortgage guaranty insurance through its various subsidiaries.

Why Are We Hesitant About ORI?

1. Growth in insurance policies was lackluster over the last five years as its 3.3% annual growth underperformed the typical financial institution

2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 9.9% annually

3. Projected book value per share decline of 1% for the next 12 months points to tough credit quality challenges ahead

At $45.09 per share, Old Republic International trades at 1.7x forward P/B. Read our free research report to see why you should think twice about including ORI in your portfolio, it’s free for active Edge members.

One-Month Return: +5.7%

Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ:CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.

Why Do We Watch CINF?

1. Market penetration was impressive this cycle as its net premiums earned expanded by 12.1% annually over the last two years

2. Share repurchases have increased shareholder returns as its annual earnings per share growth of 21.6% exceeded its revenue gains over the last five years

3. Annual book value per share growth of 20.8% over the past two years was outstanding, reflecting strong capital accumulation this cycle

Cincinnati Financial is trading at $163.72 per share, or 1.6x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members.

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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