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1 Momentum Stock on Our Buy List and 2 That Underwhelm

CSGS Cover Image

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.

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 we think lives up to the hype and two best left ignored.

Two Stocks to Sell:

CSG (CSGS)

One-Month Return: -1.8%

Powering billions of critical customer interactions annually, CSG Systems (NASDAQ:CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services.

Why Does CSGS Give Us Pause?

  1. Sales trends were unexciting over the last two years as its 1.6% annual growth was below the typical business services company
  2. Projected sales growth of 1.5% for the next 12 months suggests sluggish demand
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

CSG’s stock price of $77.10 implies a valuation ratio of 15.3x forward P/E. If you’re considering CSGS for your portfolio, see our FREE research report to learn more.

QCR Holdings (QCRH)

One-Month Return: +12.1%

With roots dating back to 1993 and a name reflecting its original Quad Cities market, QCR Holdings (NASDAQGM:QCRH) operates four community banks across Iowa and Missouri, providing commercial, consumer banking, and trust services to businesses and individuals.

Why Are We Cautious About QCRH?

  1. Sales trends were unexciting over the last two years as its 4.6% annual growth was below the typical banking company
  2. Annual net interest income growth of 8.7% over the last five years was below our standards for the banking sector
  3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5% annually

At $87.52 per share, QCR Holdings trades at 1.3x forward P/B. To fully understand why you should be careful with QCRH, check out our full research report (it’s free for active Edge members).

One Stock to Buy:

Nelnet (NNI)

One-Month Return: +2.6%

Starting as a student loan servicer in the 1970s and evolving through the changing landscape of education finance, Nelnet (NYSE:NNI) provides student loan servicing, education technology, payment processing, and banking services while managing a portfolio of education loans.

Why Are We Bullish on NNI?

  1. Market share has increased this cycle as its 18% annual revenue growth over the last two years was exceptional
  2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
  3. Management team has demonstrated it can invest in profitable ventures through its 10.7% five-year return on equity

Nelnet is trading at $133.38 per share, or 3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

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 6 Stocks for this week. 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-small-cap company Exlservice (+354% 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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