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 is one stock we think lives up to the hype and two best left ignored.

Two Momentum Stocks to Sell:

Kulicke and Soffa (KLIC)

One-Month Return: +25.9%

Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices

Why Do We Think Twice About KLIC?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 27.7 percentage points
3. Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 26.9% annually

At $49.12 per share, Kulicke and Soffa trades at 33x forward P/E. To fully understand why you should be careful with KLIC, check out our full research report (it’s free for active Edge members).

Smith & Wesson (SWBI)

One-Month Return: +28.5%

With a history dating back to 1852, Smith & Wesson (NASDAQ: SWBI) is a firearms manufacturer known for its handguns and rifles.

Why Should You Dump SWBI?

1. Sales tumbled by 10.2% annually over the last five years, showing consumer trends are working against its favor
2. Poor free cash flow margin of 2.1% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Smith & Wesson’s stock price of $11.13 implies a valuation ratio of 39.9x forward P/E. Check out our free in-depth research report to learn more about why SWBI doesn’t pass our bar.

One Momentum Stock to Watch:

Sezzle (SEZL)

One-Month Return: +29.2%

Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle (NASDAQ: SEZL) provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers.

Why Are We Fans of SEZL?

1. Impressive 67.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 173% outpaced its revenue gains

Sezzle is trading at $74.05 per share, or 17.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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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