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. All that said, here is one stock we think lives up to the hype and two best left ignored.
Two momentum stocks to sell:
H&R Block (HRB)
One-month return: +31%
Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE:HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.
Why Should You Sell HRB?
- 1.9% annual revenue growth over the last five years was slower than its consumer discretionary peers
- Earnings per share lagged its peers over the last five years as they only grew by 4.6% annually
- Eroding returns on capital suggest its historical profit centers are aging
H&R Block’s stock price of $55.01 implies a valuation ratio of 8.5x forward P/E. To fully understand why you should be careful with HRB, check out our full research report (it’s free).
Stanley Black & Decker (SWK)
One-month return: +32.2%
With an iconic “STANLEY” logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry.
Why Are We Out on SWK?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
At $118.55 per share, Stanley Black & Decker trades at 17.2x forward P/E. Check out our free in-depth research report to learn more about why SWK doesn’t pass our bar.
One momentum stock to watch:
TransUnion (TRU)
One-month return: +28.7%
One of the three major credit bureaus in the United States alongside Equifax and Experian, TransUnion (NYSE:TRU) is a global information and insights company that provides credit reports, fraud prevention tools, and data analytics to help businesses make decisions and consumers manage their financial health.
Why Could TRU Be a Winner?
- Market share has increased this cycle as its 11.9% annual revenue growth over the last five years was exceptional
- Free cash flow margin increased by 19.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
TransUnion is trading at $82.14 per share, or 15.3x 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 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
