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 are two stocks with lasting competitive advantages and one that may correct.
One Momentum Stock to Sell:
Best Buy (BBY)
One-Month Return: +18.9%
With humble beginnings as a stereo equipment seller, Best Buy (NYSE:BBY) now sells a broad selection of consumer electronics, appliances, and home office products.
Why Do We Avoid BBY?
- Ongoing store closures and lackluster same-store sales indicate sluggish demand and a focus on consolidation
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Commoditized inventory, bad unit economics, and high competition are reflected in its low gross margin of 22.6%
At $90.25 per share, Best Buy trades at 13.3x forward P/E. If you’re considering BBY for your portfolio, see our FREE research report to learn more.
Two Momentum Stocks to Watch:
Cadre (CDRE)
One-Month Return: +8.4%
Originally known as Safariland, Cadre (NYSE:CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Could CDRE Be a Winner?
- Market share has increased this cycle as its 11.8% annual revenue growth over the last two years was exceptional
- Exciting sales outlook for the upcoming 12 months calls for 17.6% growth, an acceleration from its two-year trend
- Operating margin improvement of 4.5 percentage points over the last five years demonstrates its ability to scale efficiently
Cadre’s stock price of $30.90 implies a valuation ratio of 23.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Ameriprise Financial (AMP)
One-Month Return: +17.8%
Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE:AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.
What Makes AMP Stand Out?
- Share buybacks propelled its annual earnings per share growth to 20.8%, which outperformed its revenue gains over the last five years
- Annual tangible book value per share growth of 19.2% over the last two years was superb and indicates its capital strength increased during this cycle
- Industry-leading 65.2% return on equity demonstrates management’s skill in finding high-return investments
At $540.44 per share, Ameriprise Financial trades at 11.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.