1 Momentum Industrials Stock for Long-Term Investors and 2 Overcoming Obstacles

Industrial Stocks Near 52-Week Highs: Which to Watch and Which to Avoid

Several industrial stocks are currently trading close to their highest prices in the past year. This upward momentum can often signal positive changes, such as successful product introductions, favorable shifts in their industries, or stronger financial results.

However, it's important to remember that not every stock riding a wave of momentum is a solid long-term investment. Many investors have experienced losses by chasing short-term trends. With that in mind, let's examine one industrial stock with strong fundamentals and two that may not be as promising.

Two Industrial Stocks to Consider Selling

A. O. Smith (AOS)

One-Month Performance: +6.9%

A. O. Smith (NYSE:AOS), known for inventing the glass-lined water heater, produces water heating and treatment solutions for a variety of sectors.

Reasons for Caution with AOS:

• Organic revenue growth has lagged expectations over the past two years, suggesting the company may need to enhance its offerings, pricing, or sales strategy.
• Earnings per share have increased by just 1.3% annually in the last two years, falling short of the industry average.
• Declining returns on capital indicate that the company's previous profit drivers are losing effectiveness.

Currently priced at $72.45 per share, A. O. Smith is valued at 18.2 times its projected earnings.

Winnebago (WGO)

One-Month Performance: +11.4%

Winnebago (NYSE:WGO) was established to offer affordable, high-quality recreational vehicles to American families and now manufactures a wide range of RVs, including motorhomes, travel trailers, and fifth-wheel models for outdoor enthusiasts.

Why We’re Wary of WGO:

• Annual sales have dropped by 6.7% over the past two years, reflecting unfavorable market conditions.
• Despite revenue growth, earnings per share have decreased by 10.1% annually over the last five years, indicating that new sales are less profitable.
• Decreasing returns on capital suggest that rising competition is putting pressure on the company’s margins.

With a share price of $46.61, Winnebago trades at a forward P/E ratio of 19.

One Industrial Stock Worth Considering

Bloom Energy (BE)

One-Month Performance: +59.7%

After operating quietly for eight years, Bloom Energy (NYSE:BE) now develops, produces, and sells solid oxide fuel cell systems for on-site energy generation.

What Makes BE Stand Out?

• Bloom Energy has achieved impressive annual revenue growth of 19.1% over the past five years, signaling a growing market presence.
• The company has recently turned free cash flow positive, marking a significant milestone in its financial journey.
• Enhanced returns on capital suggest that previous investments are starting to yield meaningful results.

Bloom Energy is currently trading at $144.05 per share, with a forward P/E of 168.9. Is this the right moment to invest?

Discover Even More Promising Stocks

Building your portfolio on outdated trends can be risky, especially as certain popular stocks become increasingly crowded trades.

The next generation of high-growth opportunities can be found in our curated list of Top 5 Strong Momentum Stocks for this week. These high-quality picks have delivered a remarkable 244% return over the past five years (as of June 30, 2025).

Past selections from 2020 include well-known names like Nvidia, which soared 1,326% from June 2020 to June 2025, as well as lesser-known companies such as Tecnoglass, which achieved a 1,754% five-year return. Start your search for the next breakout stock with StockStory today.