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. On that note, here is one stock we think lives up to the hype and two best left ignored.
Two Momentum Stocks to Sell:
Energizer (ENR)
One-Month Return: +20.5%
Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE:ENR) is one of the world’s largest manufacturers of batteries.
Why Do We Think Twice About ENR?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Projected sales growth of 1.7% for the next 12 months suggests sluggish demand
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Energizer is trading at $20.50 per share, or 5.8x forward P/E. To fully understand why you should be careful with ENR, check out our full research report (it’s free).
MasTec (MTZ)
One-Month Return: +20.4%
Involved in the 1996 Olympic Games MasTec (NYSE:MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.
Why Does MTZ Give Us Pause?
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 12.7%
- Subpar operating margin of 3% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.8 percentage points
At $380.50 per share, MasTec trades at 45.2x forward P/E. If you’re considering MTZ for your portfolio, see our FREE research report to learn more.
One Momentum Stock to Buy:
Monolithic Power Systems (MPWR)
One-Month Return: +54.9%
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Why Are We Bullish on MPWR?
- Impressive 27% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Free cash flow margin jumped by 6.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- ROIC punches in at 43.5%, illustrating management’s expertise in identifying profitable investments
Monolithic Power Systems’s stock price of $1,632 implies a valuation ratio of 74.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 meeting 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
