1 Surging Stock with Exciting Potential and 2 Facing Challenges

Barchart·06/19/2026 04:44:29

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. Keeping that in mind, here is one stock we think lives up to the hype and two that may correct.

Two Stocks to Sell:

Covenant Logistics (CVLG)

One-Month Return: +19.4%

Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ:CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.

Why Are We Out on CVLG?

1. Annual revenue growth of 3.8% over the last two years was below our standards for the industrials sector
2. Earnings per share fell by 15.7% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $42.60 per share, Covenant Logistics trades at 0.9x forward price-to-sales. Check out our free in-depth research report to learn more about why CVLG doesn’t pass our bar.

Assurant (AIZ)

One-Month Return: +1.3%

With roots dating back to 1892 when it was founded by a Civil War veteran, Assurant (NYSE:AIZ) provides specialized insurance products and services that protect major consumer purchases like mobile devices, vehicles, homes, and appliances.

Why Does AIZ Fall Short?

1. Scale presents growth limitations compared to smaller competitors, evidenced by its below-average 5.2% annualized growth in net premiums earned for the last five years
2. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 13% annually
3. Scale is a double-edged sword because it limits the firm’s capital growth potential compared to its smaller competitors, as reflected in its below-average annual book value per share increases of 4.2% for the last five years

Assurant is trading at $259.84 per share, or 2.1x forward P/B. Dive into our free research report to see why there are better opportunities than AIZ.

One Stock to Watch:

Plexus (PLXS)

One-Month Return: +20.1%

With over 20,000 team members across 26 global facilities, Plexus (NASDAQ:PLXS) designs, manufactures, and services complex electronic products for companies in aerospace/defense, healthcare, and industrial sectors.

Why Is PLXS on Our Radar?

1. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 17.7%
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 28.9% exceeded its revenue gains over the last two years
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

Plexus’s stock price of $300.38 implies a valuation ratio of 32.8x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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.

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