Great things are happening to the stocks in this article. They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here is one stock with lasting competitive advantages and two not so much.
Two Momentum Stocks to Sell:
Potbelly (PBPB)
One-Month Return: +13.5%
With a unique origin story where the company actually started as an antique shop, Potbelly (NASDAQ: PBPB) today is a chain known for its toasty sandwiches.
Why Do We Avoid PBPB?
- Sales trends were unexciting over the last six years as its 1.8% annual growth was below the typical restaurant company
- Smaller revenue base of $465.1 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Subpar operating margin of 2.6% constrains its ability to invest in process improvements or effectively respond to new competitive threats
Potbelly is trading at $12.87 per share, or 12.8x forward EV-to-EBITDA. To fully understand why you should be careful with PBPB, check out our full research report (it’s free).
Tutor Perini (TPC)
One-Month Return: +21.2%
Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE: TPC) is a civil and building construction company offering diversified general contracting and design-build services.
Why Does TPC Give Us Pause?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Gross margin of 6.1% reflects its high production costs
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $50.89 per share, Tutor Perini trades at 25x forward P/E. If you’re considering TPC for your portfolio, see our FREE research report to learn more.
One Momentum Stock to Watch:
AMD (AMD)
One-Month Return: +26.7%
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Does AMD Stand Out?
- Impressive 30.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Market share is on track to rise over the next 12 months as its 19.3% projected revenue growth implies demand will accelerate from its two-year trend
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 34.3% annually
AMD’s stock price of $160.68 implies a valuation ratio of 35x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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 Tecnoglass (+1,754% 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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