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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here is one stock with lasting competitive advantages and two not so much.
Two Momentum Stocks to Sell:
Crocs (CROX)
One-Month Return: +26.7%
Founded in 2002, Crocs (NASDAQ: CROX) sells casual footwear and is known for its iconic clog shoe.
Why Do We Pass on CROX?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Free cash flow margin is on track to jump by 1.8 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Crocs’s stock price of $100.04 implies a valuation ratio of 7.4x forward P/E. To fully understand why you should be careful with CROX, check out our full research report (it’s free).
Hertz (HTZ)
One-Month Return: +66.9%
Started with a dozen Model T Fords, Hertz (NASDAQ: HTZ) is a global car rental company providing vehicle rental services to leisure and business travelers.
Why Should You Sell HTZ?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.7% annually over the last two years
- Eroding returns on capital suggest its historical profit centers are aging
Hertz is trading at $6.63 per share, or 131.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including HTZ in your portfolio.
One Momentum Stock to Watch:
Astrana Health (ASTH)
One-Month Return: +17.3%
Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.
Why Do We Like ASTH?
- Annual revenue growth of 51.5% over the past two years was outstanding, reflecting market share gains this cycle
- Market share will likely rise over the next 12 months as its expected revenue growth of 25.4% is robust
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 15.9% annually
At $28.87 per share, Astrana Health trades at 10.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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 for 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 (+1,326% 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.
