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.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. On that note, here is one stock with lasting competitive advantages and two that may correct.

Two Stocks to Sell:

Service International (SCI)

One-Month Return: -3.1%

Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.

Why Do We Steer Clear of SCI?

1. Number of funeral services performed has disappointed over the past two years, indicating weak demand for its offerings

2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Service International is trading at $80.26 per share, or 20.2x forward P/E. Dive into our free research report to see why there are better opportunities than SCI .

Atlas Energy Solutions (AESI)

One-Month Return: +43%

Building the world's first long-haul proppant conveyor system to reduce truck traffic, Atlas Energy Solutions (NYSE:AESI) mines and processes sand used as proppant to prop open fractures in oil and gas wells during hydraulic fracturing.

Why Should You Sell AESI?

1. Revenue base of $1.10 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale

2. Day-to-day expenses have swelled relative to revenue over the last five years as its EBITDA margin fell by 20.8 percentage points

3. Cash burn makes us question whether it can achieve sustainable long-term growth

Atlas Energy Solutions’s stock price of $17.44 implies a valuation ratio of 13.6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including AESI in your portfolio, it’s free .

One Stock to Watch:

MasTec (MTZ)

One-Month Return: +26.9%

Involved in the 1996 Olympic Games MasTec (NYSE:MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.

Why Is MTZ on Our Radar?

1. Backlog has averaged 24.1% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future

2. Projected revenue growth of 14.6% for the next 12 months is above its two-year trend, pointing to accelerating demand

3. Earnings per share grew by 77.1% annually over the last two years and trumped its peers