Great things are happening to the stocks in this article. They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here is one stock with the fundamentals to back up its performance and two best left ignored.
Two Momentum Stocks to Sell:
Bumble (BMBL)
One-Month Return: +46.4%
Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ: BMBL) is a leading dating app built with women at the center.
Why Does BMBL Fall Short?
- Customer spending has dipped by 4.9% on average as it focused on growing its buyers
- Sales are projected to tank by 10.9% over the next 12 months as demand evaporates
- 4.4 percentage point decline in its free cash flow margin over the last few years reflects the company’s increased investments to defend its market position
Bumble’s stock price of $5.84 implies a valuation ratio of 2.5x forward EV/EBITDA. Check out our free in-depth research report to learn more about why BMBL doesn’t pass our bar.
Carlisle (CSL)
One-Month Return: +13.1%
Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE: CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.
Why Do We Think Twice About CSL?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 5.1%
At $401.02 per share, Carlisle trades at 17.7x forward P/E. If you’re considering CSL for your portfolio, see our FREE research report to learn more.
One Momentum Stock to Watch:
Snowflake (SNOW)
One-Month Return: +24.5%
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE: SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Why Should SNOW Be on Your Watchlist?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 20.1% over the last year
- High switching costs and customer loyalty are evident in its net revenue retention rate of 127%
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
Snowflake is trading at $180 per share, or 13.4x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
