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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here are two stocks with the fundamentals to back up their performance and one not so much.
One Momentum Stock to Sell:
CooperCompanies (COO)
One-Month Return: +23.1%
With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ: COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services.
Why Are We Wary of COO?
- 6.5% annual revenue growth over the last two years was slower than its healthcare peers
- Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its two-year trend
- Low returns on capital reflect management’s struggle to allocate funds effectively
CooperCompanies’s stock price of $74.30 implies a valuation ratio of 15.2x forward P/E. If you’re considering COO for your portfolio, see our FREE research report to learn more.
Two Momentum Stocks to Watch:
Remitly (RELY)
One-Month Return: +20.4%
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 grown by 28.4% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Additional sales over the last three years increased its profitability as the 247% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 35.2 percentage points over the last few years, giving the company more chips to play with
Remitly is trading at $23.76 per share, or 11x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Dutch Bros (BROS)
One-Month Return: +27.7%
Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.
Why Does BROS Catch Our Eye?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Customers are lining up to eat at its restaurants as the company’s same-store sales growth averaged 5.8% over the past two years
- Free cash flow margin grew by 2.8 percentage points over the last year, giving the company more chips to play with
At $72.25 per share, Dutch Bros trades at 73x forward P/E. 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 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
