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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here is one stock with the fundamentals to back up its performance and two best left ignored.
Two Momentum Stocks to Sell:
Organon (OGN)
One-Month Return: +8.4%
Spun off from Merck in 2021 to create a company dedicated to addressing unmet needs in women's health, Organon (NYSE: OGN) is a global healthcare company focused on improving women's health through prescription therapies, medical devices, biosimilars, and established medicines.
Why Does OGN Worry Us?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.6% annually over the last five years
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- 25.6 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
Organon’s stock price of $10.21 implies a valuation ratio of 2.6x forward P/E. Read our free research report to see why you should think twice about including OGN in your portfolio.
EchoStar (SATS)
One-Month Return: +18.8%
Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ: SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.
Why Is SATS Risky?
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 8.1% annually
- 10.8 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
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $73.40 per share, EchoStar trades at 15.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SATS doesn’t pass our bar.
One Momentum Stock to Watch:
Vita Coco (COCO)
One-Month Return: +11.9%
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.
Why Do We Watch COCO?
- Average unit sales growth of 7.8% over the past two years reflects steady demand for its products
- Earnings growth has trumped its peers over the last three years as its EPS has compounded at 195% annually
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are climbing as it finds even more attractive growth opportunities
Vita Coco is trading at $40 per share, or 30.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
