2 Momentum Stocks Worth Investigating and 1 We Avoid

Aug 20, 2026
2-momentum-stocks-worth-investigating-and-1-we-avoid

The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.

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 we think live up to the hype and one best left ignored.

One Stock to Sell:

United Community Banks (UCB)

One-Month Return: -0.7%

Starting as a small community bank in 1950 and expanding through strategic acquisitions across the Southeast, United Community Banks (NYSE:UCB) is a regional bank holding company that provides financial services including loans, deposits, wealth management, and merchant services across the southeastern United States.

Why Are We Wary of UCB?

  1. Annual revenue growth of 8% over the last two years was below our standards for the banking sector
  2. Estimated net interest income growth of 2.1% for the next 12 months implies demand will slow from its five-year trend
  3. Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew

United Community Banks is trading at $35.76 per share, or 1.1x forward P/B. To fully understand why you should be careful with UCB, check out our full research report (it’s free).

Two Stocks to Watch:

Interface (TILE)

One-Month Return: +22.8%

Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ:TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions.

Why Are We Fans of TILE?

  1. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 34.1% outpaced its revenue gains
  2. Free cash flow margin increased by 7.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
  3. Returns on capital are growing as management capitalizes on its market opportunities

At $39.35 per share, Interface trades at 1.6x trailing 12-month price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Amgen (AMGN)

One-Month Return: +21.2%

Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ:AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.

Why Does AMGN Stand Out?

  1. Economies of scale give it more fixed cost leverage than its smaller competitors
  2. Strong free cash flow margin of 28.2% enables it to reinvest or return capital consistently
  3. ROIC punches in at 17.3%, illustrating management’s expertise in identifying profitable investments

Amgen’s stock price of $441.50 implies a valuation ratio of 18.1x forward P/E. Is now a good time to buy? Find out in our full 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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

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