The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to new product launches, positive news, or even a dedicated social media following.
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 lasting competitive advantages and two that may correct.
Two Momentum Stocks to Sell:
Wolverine Worldwide (WWW)
One-Month Return: +49.3%
Founded in 1883, Wolverine Worldwide (NYSE: WWW) is a global footwear company with a diverse portfolio of brands including Merrell, Hush Puppies, and Saucony.
Why Do We Think WWW Will Underperform?
- Products and services aren't resonating with the market as its revenue declined by 4.1% annually over the last five years
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Push for growth has led to negative returns on capital, signaling value destruction
At $17.11 per share, Wolverine Worldwide trades at 15.5x forward P/E. If you’re considering WWW for your portfolio, see our FREE research report to learn more.
TPI Composites (TPIC)
One-Month Return: +50.3%
Founded in 1968, TPI Composites (NASDAQ: TPIC) manufactures composite wind turbine blades and provides related precision molding and assembly systems.
Why Are We Out on TPIC?
- Products, pricing, or go-to-market strategy need some adjustments as its billings have averaged 11.5% declines over the past two years
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Negative EBITDA restricts its access to capital and increases the probability of shareholder dilution if things turn unexpectedly
TPI Composites is trading at $1.12 per share, or 1x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TPIC.
One Momentum Stock to Buy:
Byrna (BYRN)
One-Month Return: +24%
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ: BYRN) is a provider of non-lethal weapons.
Why Do We Love BYRN?
- Impressive 40.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Additional sales over the last two years increased its profitability as the 99.2% annual growth in its earnings per share outpaced its revenue
- Free cash flow profile has reached break even, showing the company is at an important crossroads
Byrna’s stock price of $25 implies a valuation ratio of 39.7x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
