Exciting developments are taking place for the stocks in this article. They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.
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 is one stock we think lives up to the hype and two not so much.
Two Momentum Stocks to Sell:
Teradata (TDC)
One-Month Return: +26.4%
Pioneering data warehousing technology in the 1980s before "big data" was a common term, Teradata (NYSE: TDC) provides cloud-based data analytics and AI platforms that help large enterprises integrate, analyze, and leverage their data across multiple environments.
Why Are We Out on TDC?
- Customers had second thoughts about committing to its platform over the last year as its billings averaged 4.4% declines
- Gross margin of 59.4% reflects its high servicing costs
- Operating margin failed to increase over the last year, indicating the company couldn’t optimize its expenses
At $26.98 per share, Teradata trades at 1.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than TDC.
Haemonetics (HAE)
One-Month Return: +48.5%
With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE: HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.
Why Does HAE Give Us Pause?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Revenue base of $1.33 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Estimated sales growth of 1.6% for the next 12 months implies demand will slow from its two-year trend
Haemonetics’s stock price of $73.89 implies a valuation ratio of 14.2x forward P/E. To fully understand why you should be careful with HAE, check out our full research report (it’s free for active Edge members).
One Momentum Stock to Buy:
JFrog (FROG)
One-Month Return: +26.6%
Named after the amphibian that continuously evolves from egg to tadpole to adult, JFrog (NASDAQ: FROG) provides a platform that helps organizations securely create, store, manage, and distribute software packages across any system.
Why Is FROG a Good Business?
- Billings have averaged 22.9% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Robust free cash flow margin of 28% gives it many options for capital deployment
JFrog is trading at $59.54 per share, or 12.3x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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