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 with lasting competitive advantages and two best left ignored.
Two Momentum Stocks to Sell:
Integer Holdings (ITGR)
One-Month Return: +3.4%
With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE: ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.
Why Are We Cautious About ITGR?
- Annual revenue growth of 6.1% over the last two years was below our standards for the healthcare sector
- Smaller revenue base of $1.84 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Estimated sales growth of 1.5% for the next 12 months implies demand will slow from its two-year trend
Integer Holdings’s stock price of $125.31 implies a valuation ratio of 18.7x forward P/E. If you’re considering ITGR for your portfolio, see our FREE research report to learn more.
Everforth (EFOR)
One-Month Return: +15.2%
Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, Everforth (EFOR) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.
Why Do We Steer Clear of EFOR?
- Sales tumbled by 3.7% annually over the last two years, showing market trends are working against it during this cycle
- Projected sales for the next 12 months are flat and suggest demand will be subdued
- Earnings per share have contracted by 4.3% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
Everforth is trading at $32.76 per share, or 8x forward P/E. Dive into our free research report to see why there are better opportunities than EFOR.
One Momentum Stock to Buy:
Abercrombie and Fitch (ANF)
One-Month Return: +49.1%
Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.
Why Do We Love ANF?
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 5% over the past two years
- Its collection of products is difficult to replicate at scale and leads to a best-in-class gross margin of 63.2%
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $148.37 per share, Abercrombie and Fitch trades at 11.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
