The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.
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 with lasting competitive advantages and two that may correct.
Two Momentum Stocks to Sell:
PAR Technology (PAR)
One-Month Return: +13.2%
Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology (NYSE:PAR) provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs.
Why Are We Wary of PAR?
- Negative free cash flow raises questions about the return timeline for its investments
- Negative returns on capital show that some of its growth strategies have backfired
PAR Technology’s stock price of $18.55 implies a valuation ratio of 17.4x forward P/E. To fully understand why you should be careful with PAR, check out our full research report (it’s free).
Oracle (ORCL)
One-Month Return: +20.9%
Starting as a database company in 1977 and now powering mission-critical systems across the globe, Oracle (NYSE:ORCL) provides enterprise software and hardware products and services that help businesses manage their information technology needs.
Why Does ORCL Give Us Pause?
- The company has faced growth challenges as its 10.7% annual revenue increases over the last five years fell short of other software companies
- Free cash flow margin is forecasted to shrink by 19.1 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $146.76 per share, Oracle trades at 4.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ORCL.
One Momentum Stock to Buy:
Astronics (ATRO)
One-Month Return: +37.9%
Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ:ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.
Why Is ATRO a Good Business?
- Impressive 16.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Free cash flow margin jumped by 10.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Rising returns on capital show the company is starting to reap the benefits of its past investments
Astronics is trading at $92.73 per share, or 32x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
