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. On that note, here is one stock with the fundamentals to back up its performance and two that may correct.
Two Momentum Stocks to Sell:
Commvault (CVLT)
One-Month Return: +12.7%
Born from the need to create ironclad protection in an increasingly dangerous digital world, Commvault (NASDAQ: CVLT) provides data protection and cyber resilience software that helps organizations secure, back up, and recover their data across on-premises, hybrid, and multi-cloud environments.
Why Does CVLT Give Us Pause?
- Products, pricing, or go-to-market strategy may need some adjustments as its 12.2% average billings growth over the last year was weak
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Operating margin dropped by 1.5 percentage points over the last year as the company focused on expansion rather than profitability
Commvault is trading at $150.32 per share, or 4.6x forward price-to-sales. Read our free research report to see why you should think twice about including CVLT in your portfolio.
Ollie's (OLLI)
One-Month Return: +14.5%
Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet (NASDAQ: OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts.
Why Do We Think Twice About OLLI?
- Modest revenue base of $2.79 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Static operating margin over the last year shows it couldn’t become more efficient
- Underwhelming 9.1% return on capital reflects management’s difficulties in finding profitable growth opportunities
Ollie’s stock price of $88.06 implies a valuation ratio of 19.3x forward P/E. To fully understand why you should be careful with OLLI, check out our full research report (it’s free).
One Momentum Stock to Buy:
CrowdStrike (CRWD)
One-Month Return: +28.6%
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Are We Bullish on CRWD?
- Average billings growth of 26% over the last year enhances its liquidity and shows there is steady demand for its products
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
At $270.03 per share, CrowdStrike trades at 41.8x forward price-to-sales. 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.
