Another week of predominantly bullish economic data has driven the overall market higher. For bulls, this may seem like a dream come true, but for a skeptic like me, I use these never-ending rallies as motivation to evaluate companies trading near their 52-week highs to see if they really deserve their current valuations.

Keep in mind that some companies deserve to be trading at 52-week highs. ARM Holdings (Nasdaq: ARMH) has been riding high for over a week now after Microsoft disclosed that the next generation of Windows will include ARM's architecture. But other companies potentially deserve a kick in the pants. Here's a look at three companies that could be worth selling.

Can you hear me now?
Yes, I'm ready to take your best jabs by recommending that you let Verizon (NYSE: VZ) go. Don't be fooled by its amazing dividend. The stock has been priced for perfection after Verizon unveiled its less-than-surprising move to offer Apple's (Nasdaq: AAPL) iPhone on its network this week. Verizon has also been feverishly spending on upgrading its 4G network and now must deliver on some very lofty expectations.

There's something just not very enticing about 2% estimated revenue growth coupled with $53 billion in total debt. I feel you'd be better off not answering Verizon's call at these levels.

Valuation in the clouds
Cloud-computing play F5 Networks (Nasdaq: FFIV) officially makes the list because of its incredibly lofty valuation. F5 has been able to handily power past analyst expectations over the past year with impressive margins and significantly lower inventory levels. Although it had a spectacular 2010, it will have some very difficult comparisons ahead.

I think it's important to understand that just because a company is involved in cloud computing, it doesn't necessarily deserve a forward price-to-earnings multiple of 33 or a price-to-book ratio of 11. I don't think F5 can stay in high gear much longer.

Ring the register
Whole Foods (Nasdaq: WFMI) caught my attention this week as it rose to a new 52-week high despite competitor SUPERVALU (NYSE: SVU) faltering earlier in the week after being unable to pass along higher commodity costs to customers.

It's unreasonable to think that these two companies are catering to the same group of consumers, but they do share a common theme in that they must find ways to pass along increasing food costs to customers. I'm a bit leery about believing Whole Foods when it claims consumers have been willing to step up their discretionary spending when both SUPERVALU and Family Dollar have shown us otherwise. Whole Foods could just be that darn good, but with organic competition increasing, I'm not sold on it.

Have an opinion on any of the above companies? Let's hear about it in the comments section below!

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