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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here are two stocks with the fundamentals to back up their performance and one best left ignored.
One Momentum Stock to Sell:
Ibotta (IBTA)
One-Month Return: +6.5%
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE:IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Why Are We Hesitant About IBTA?
- Sales trends were unexciting over the last two years as its 1.2% annual growth was below the typical business services company
- Revenue base of $340.3 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Earnings per share have contracted by 35.2% annually over the last one years, a headwind for returns as stock prices often echo long-term EPS performance
Ibotta’s stock price of $35.52 implies a valuation ratio of 22.6x forward P/E. Dive into our free research report to see why there are better opportunities than IBTA.
Two Momentum Stocks to Watch:
CrowdStrike (CRWD)
One-Month Return: +30.8%
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ:CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Is CRWD a Top Pick?
- Billings have averaged 26% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Estimated revenue growth of 22.8% for the next 12 months implies its momentum over the last two years will continue
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
CrowdStrike is trading at $526.16 per share, or 22.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
AMD (AMD)
One-Month Return: +86.8%
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Could AMD Be a Winner?
- Market share has increased this cycle as its 26.8% annual revenue growth over the last five years was exceptional
- Projected revenue growth of 47.5% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 23% annually
At $461.14 per share, AMD trades at 47x 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
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week – FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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.
