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.
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 is one stock we think lives up to the hype and two best left ignored.
Two Momentum Stocks to Sell:
MongoDB (MDB)
One-Month Return: +41.3%
Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ: MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.
Why Is MDB Not Exciting?
- Track record of operating margin losses stem from its decision to pursue growth instead of profits
- Projected 2.2 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
MongoDB is trading at $322.52 per share, or 10.3x forward price-to-sales. Read our free research report to see why you should think twice about including MDB in your portfolio.
Lindblad Expeditions (LIND)
One-Month Return: +4.7%
Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ: LIND) offers cruising experiences to remote destinations in partnership with National Geographic.
Why Should You Dump LIND?
- Poor expense management has led to an operating margin of 3.8% that is below the industry average
- Free cash flow margin is forecasted to shrink by 2.2 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- Push for growth has led to negative returns on capital, signaling value destruction
At $14.27 per share, Lindblad Expeditions trades at 7.1x forward EV-to-EBITDA. To fully understand why you should be careful with LIND, check out our full research report (it’s free).
One Momentum Stock to Buy:
UnitedHealth (UNH)
One-Month Return: +23.3%
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
Why Is UNH a Good Business?
- Unparalleled scale of $422.8 billion in revenue enables it to spread administrative costs across a larger membership base
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
UnitedHealth’s stock price of $309.48 implies a valuation ratio of 14.4x 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
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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 183% over the last five years (as of March 31st 2025).
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 Kadant (+351% 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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