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1 Surging Stock to Consider Right Now and 2 to Approach with Caution

QRVO Cover Image

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.

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 with the fundamentals to back up its performance and two not so much.

Two Momentum Stocks to Sell:

Qorvo (QRVO)

One-Month Return: +33.4%

Formed by the merger of TriQuint and RF Micro Devices, Qorvo (NASDAQ: QRVO) is a designer and manufacturer of RF chips used in almost all smartphones globally, along with a variety of chips used in networking equipment and infrastructure.

Why Do We Avoid QRVO?

  1. Annual revenue growth of 2.8% over the last five years was below our standards for the semiconductor sector
  2. Efficiency has decreased over the last five years as its operating margin fell by 20 percentage points
  3. Free cash flow margin shrank by 14.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Qorvo is trading at $78.60 per share, or 14.2x forward P/E. If you’re considering QRVO for your portfolio, see our FREE research report to learn more.

Olaplex (OLPX)

One-Month Return: +0%

Rising to fame on TikTok because of its “bond building" hair products, Olaplex (NASDAQ: OLPX) offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.

Why Do We Pass on OLPX?

  1. Annual revenue declines of 14.2% over the last three years indicate problems with its market positioning
  2. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 40.4% annually, worse than its revenue
  3. 16.1 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

Olaplex’s stock price of $1.27 implies a valuation ratio of 17.3x forward P/E. Read our free research report to see why you should think twice about including OLPX in your portfolio.

One Momentum Stock to Watch:

Ingersoll Rand (IR)

One-Month Return: +14.9%

Started with the invention of the steam drill, Ingersoll Rand (NYSE: IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.

Why Are We Positive On IR?

  1. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
  2. Additional sales over the last five years increased its profitability as the 16.2% annual growth in its earnings per share outpaced its revenue
  3. Strong free cash flow margin of 15.7% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy

At $84.28 per share, Ingersoll Rand trades at 24.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

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.

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