Stocks trading near their fifty-two-week highs often signal strong investor confidence, but momentum doesnt always last. Today, were looking at three such names: luxury brand owner Tapestry, audio gear maker Sonos, and chip inspection leader KLA Corporation. While all look hot, analysts say only one has the fundamentals to keep climbing. Tapestry, once known as Coach, sells high-end bags and fashion, but its growth has stalled. Constant currency revenue has disappointed for two years, demand feels soft, and low operating margins limit its flexibility. Returns on capital are eroding from a weak base, meaning recent investments might be hurting more than helping. Its trading around one hundred twenty-nine dollars per share at over twenty-two times forward earnings. Sonos pioneered wireless home speakers, yet its revenue grew just one point seven percent annually over five years, lagging peers. Free cash flow margins sit at eight point two percent lately, leaving little room for growth or dividends. Like Tapestry, its returns on capital are shrinking, signaling managements bets arent paying off. Investors chasing these highs risk getting burned, as past momentum plays have faded fast. Tapestry and Sonos face headwinds in discretionary spending, while broader market trends favor tech enablers. KLA stands out with sixteen point one percent annual revenue growth over five years, thanks to market share gains in semiconductors. KLAs gear inspects chips and boasts a sixty point six percent gross margin thats hard to beat, plus thirty point eight percent free cash flow margins for reinvesting or buybacks. At one thousand two hundred sixty-eight dollars per share and thirty-three point five times forward earnings, it looks primed to outperform.

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