2 Mooning Stocks to Target This Week and 1 We Avoid

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.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here are two stocks with lasting competitive advantages and one not so much.

One Stock to Sell:

Voya Financial (VOYA)

One-Month Return: +7.8%

Originally spun off from Dutch financial giant ING in 2013 and rebranded with a name suggesting "voyage," Voya Financial (NYSE:VOYA) provides workplace benefits and savings solutions to U.S. employers, helping their employees achieve better financial outcomes through retirement plans and insurance products.

Why Do We Think Twice About VOYA?

5.5% annual revenue growth over the last two years was slower than its financials peers Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.9% annually Tangible book value per share tumbled by 13.1% annually over the last five years, showing financials sector trends are working against its favor during this cycle

At $81.38 per share, Voya Financial trades at 8.4x forward P/E. Check out our free in-depth research report to learn more about why VOYA doesn’t pass our bar.

Two Stocks to Watch:

Nextpower (NXT)

One-Month Return: +26.3%

With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextpower (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun.

Why Will NXT Beat the Market?

Impressive 19.3% annual revenue growth over the last two years indicates it’s winning market share this cycle Free cash flow margin expanded by 25.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends Rising returns on capital show management is finding more attractive investment opportunities

Nextpower is trading at $134.50 per share, or 30.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Caterpillar (CAT)

One-Month Return: +8.3%

With its iconic yellow machinery working on construction sites, Caterpillar (NYSE:CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.

Why Is CAT Interesting?

Healthy operating margin of 16.9% shows it’s a well-run company with efficient processes, and its profits increased over the last five years as it scaled Free cash flow margin increased by 5 percentage points over the last five years, giving the company more capital to invest or return to shareholders ROIC punches in at 36.6%, illustrating management’s expertise in identifying profitable investments

Story Continues

Caterpillar’s stock price of $864.50 implies a valuation ratio of 35.2x 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

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.

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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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