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.

But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here are two stocks we think live up to the hype and one that may correct.

One Momentum Stock to Sell:

U.S. Cellular (USM)

One-Month Return: +56.9%

Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, US Cellular (NYSE: USM) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services.

Why Do We Think USM Will Underperform?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 7% annually over the last five years
2. Overall productivity fell over the last five years as its plummeting sales were accompanied by a decline in its adjusted operating margin
3. Issuance of new shares over the last five years caused its earnings per share to fall by 16.5% annually, even worse than its revenue declines

At $77.01 per share, U.S. Cellular trades at Check out our free in-depth research report to learn more about why USM doesn’t pass our bar.

Two Momentum Stocks to Buy:

KLA Corporation (KLAC)

One-Month Return: +12.2%

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ: KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.

Why Is KLAC a Top Pick?

1. Impressive 16.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 60.6%
3. Strong free cash flow margin of 30.8% enables it to reinvest or return capital consistently

KLA Corporation is trading at $1,151 per share, or 32.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

LPL Financial (LPLA)

One-Month Return: +16%

As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ: LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.

Why Are We Bullish on LPLA?

1. Annual revenue growth of 26.2% over the last two years was superb and indicates its market share increased during this cycle
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 23.7% over the last five years outstripped its revenue performance
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

LPL Financial’s stock price of $372.40 implies a valuation ratio of 16.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our 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 244% over the last five years (as of June 30, 2025).

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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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