1 Mooning Stock with Promising Prospects and 2 Facing Challenges

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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here is one stock with the fundamentals to back up its performance and two that may correct.

Two Stocks to Sell:

Collegium Pharmaceutical (COLL)

One-Month Return: +31.4%

Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ:COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.

Why Does COLL Worry Us?

1. Subscale operations are evident in its revenue base of $757.1 million, meaning it has fewer distribution channels than its larger rivals
2. Waning returns on capital imply its previous profit engines are losing steam

At $47.09 per share, Collegium Pharmaceutical trades at 6.3x forward P/E. If you’re considering COLL for your portfolio, see our FREE research report to learn more.

FB Financial (FBK)

One-Month Return: +5.4%

Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE:FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.

Why Are We Wary of FBK?

1. Sales were flat over the last five years, indicating it’s failed to expand this cycle
2. Earnings per share lagged its peers over the last five years as they only grew by 3.5% annually
3. Below-average return on equity indicates management struggled to find compelling investment opportunities

FB Financial’s stock price of $57.02 implies a valuation ratio of 1.5x forward P/B. Dive into our free research report to see why there are better opportunities than FBK.

One Stock to Watch:

iRhythm (IRTC)

One-Month Return: -0.1%

Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ:IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders.

Why Does IRTC Stand Out?

1. Market share has increased this cycle as its 23.4% annual revenue growth over the last five years was exceptional
2. Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
3. Free cash flow flipped to positive over the last five years, showing the company has crossed a key inflection point

iRhythm is trading at $180.31 per share, or 65.9x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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 Kadant (+351% 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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