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. On that note, here are two stocks with the fundamentals to back up their performance and one best left ignored.
One Momentum Stock to Sell:
Estée Lauder (EL)
One-Month Return: +25.2%
Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE: EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming.
Why Does EL Fall Short?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Performance over the past three years was negatively impacted by new share issuances as its earnings per share dropped by 10.1% annually, worse than its revenue
Estée Lauder is trading at $104.19 per share, or 31.5x forward P/E. If you’re considering EL for your portfolio, see our FREE research report to learn more.
Two Momentum Stocks to Buy:
Remitly (RELY)
One-Month Return: +16.8%
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Will RELY Outperform?
- Active Customers have increased by an average of 25.8% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 163% outpaced its revenue gains
- Free cash flow margin increased by 43.1 percentage points over the last few years, giving the company more capital to invest or return to shareholders
At $26.46 per share, Remitly trades at 11.6x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Instacart (CART)
One-Month Return: +15.3%
Powering more than one billion grocery orders since its founding, Instacart (NASDAQ: CART) is an online grocery shopping and delivery platform that partners with retailers to help customers shop from local stores through its app or website.
Why Will CART Beat the Market?
- Superior platform functionality and low servicing costs lead to a stellar gross margin of 73.6%
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 28.9%, and its rise over the last few years was fueled by some leverage on its fixed costs
- Strong free cash flow margin of 25.9% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
Instacart’s stock price of $50.80 implies a valuation ratio of 8.7x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive 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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
