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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here is one stock with lasting competitive advantages and two not so much.

Two Momentum Stocks to Sell:

Winnebago (WGO)

One-Month Return: +11.6%

Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE: WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.

Why Do We Pass on WGO?

1. Sales tumbled by 10.5% annually over the last two years, showing market trends are working against its favor during this cycle
2. Earnings per share fell by 8.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Waning returns on capital imply its previous profit engines are losing steam

Winnebago is trading at $33.55 per share, or 14.1x forward P/E. Read our free research report to see why you should think twice about including WGO in your portfolio.

Lemonade (LMND)

One-Month Return: +46.9%

Built on the principle of giving back unused premiums to charitable causes selected by policyholders, Lemonade (NYSE: LMND) is a technology-driven insurance company that offers homeowners, renters, pet, car, and life insurance through an AI-powered digital platform.

Why Does LMND Worry Us?

1. Incremental sales over the last two years were less profitable as its 17.4% annual earnings per share growth lagged its revenue gains
2. Annual book value per share declines of 7.2% for the past five years show its capital management struggled during this cycle
3. Negative return on equity shows management lost money while trying to expand the business

Lemonade’s stock price of $70.71 implies a valuation ratio of 10.4x forward P/B. If you’re considering LMND for your portfolio, see our FREE research report to learn more.

One Momentum Stock to Buy:

Amphenol (APH)

One-Month Return: +7.6%

With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.

Why Are We Backing APH?

1. Annual revenue growth of 29.7% 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 40.2% over the last two years outstripped its revenue performance
3. Strong free cash flow margin of 15% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business

At $135.19 per share, Amphenol trades at 35.6x 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 Strong Momentum Stocks for this week. 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-micro-cap company Kadant (+351% 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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