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 that may correct.
Two Momentum Stocks to Sell:
Intel (INTC)
One-Month Return: +7.4%
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.
Why Do We Steer Clear of INTC?
- Annual sales declines of 5.9% for the past five years show its products and services struggled to connect with the market during this cycle
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- 19.7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Intel’s stock price of $121.01 implies a valuation ratio of 120.1x forward P/E. To fully understand why you should be careful with INTC, check out our full research report (it’s free).
QuidelOrtho (QDEL)
One-Month Return: +31.3%
Born from the 2022 merger of Quidel and Ortho Clinical Diagnostics, QuidelOrtho (NASDAQ: QDEL) develops and manufactures diagnostic testing solutions for healthcare providers, from rapid point-of-care tests to complex laboratory instruments and systems.
Why Do We Pass on QDEL?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Free cash flow margin shrank by 23 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Eroding returns on capital suggest its historical profit centers are aging
At $17.86 per share, QuidelOrtho trades at 8.8x forward P/E. Check out our free in-depth research report to learn more about why QDEL doesn’t pass our bar.
One Momentum Stock to Buy:
Sezzle (SEZL)
One-Month Return: +60.7%
Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle (NASDAQ: SEZL) provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers.
Why Are We Bullish on SEZL?
- Impressive 67.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings per share grew by 65% annually over the last year and trumped its peers
Sezzle is trading at $181.90 per share, or 32.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
