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 are two stocks with lasting competitive advantages and one that may correct.
One Momentum Stock to Sell:
Oceaneering (OII)
One-Month Return: +20%
Deploying a fleet of 250 tethered underwater robots around the globe, Oceaneering International (NYSE:OII) provides remotely operated underwater vehicles and subsea equipment for offshore energy exploration.
Why Are We Bearish on OII?
- Muted 9.8% annual revenue growth over the last five years shows its demand lagged behind its energy upstream and integrated energy peers
- Gross margin of 17.7% reflects its high production costs and unfavorable asset base
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 4.5% for the last five years
Oceaneering is trading at $47.45 per share, or 11.7x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why OII doesn’t pass our bar.
Two Momentum Stocks to Watch:
Genpact (G)
One-Month Return: +21.3%
Originally spun off from General Electric in 2005 to provide business process services, Genpact (NYSE:G) is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions.
Why Does G Stand Out?
- Share repurchases over the last five years enabled its annual earnings per share growth of 11.8% to outpace its revenue gains
- G is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its rising returns show it’s making even more lucrative bets
Genpact’s stock price of $33.79 implies a valuation ratio of 7.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Raymond James (RJF)
One-Month Return: +18.9%
Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE:RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.
Why Are We Positive on RJF?
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 14.1% exceeded its revenue gains over the last five years
- Lending discipline and capital management prowess led to above-market annual tangible book value per share growth of 10% over the last two years
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $177.21 per share, Raymond James trades at 12.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.
