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 lasting competitive advantages and two that may correct.
Two Momentum Stocks to Sell:
Marqeta (MQ)
One-Month Return: +33.3%
Founded by CEO Jason Gardner in 2009, Marqeta (NASDAQ: MQ) is an innovative card issuer that provides companies with the ability to issue and process virtual, physical, and tokenized credit and debit cards.
Why Does MQ Worry Us?
- Software offerings aren’t resonating in this new AI paradigm as its revenue declined by 2.8% annually over the last three years
- Gross margin of 69.4% reflects its relatively high servicing costs
At $5.20 per share, Marqeta trades at 4.3x forward price-to-sales. If you’re considering MQ for your portfolio, see our FREE research report to learn more.
FuelCell Energy (FCEL)
One-Month Return: +22%
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
Why Are We Hesitant About FCEL?
- Backlog growth averaged a weak 1% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy
- Free cash flow margin dropped by 73.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
FuelCell Energy is trading at $4.55 per share, or 0.6x forward price-to-sales. Check out our free in-depth research report to learn more about why FCEL doesn’t pass our bar.
One Momentum Stock to Buy:
Uber (UBER)
One-Month Return: +19.6%
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE: UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
Why Should You Buy UBER?
- Monthly Active Platform Consumers are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 183% outpaced its revenue gains
- Free cash flow margin expanded by 17.7 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Uber’s stock price of $88.25 implies a valuation ratio of 20.8x forward EV/EBITDA. Is now a good time to buy? See for yourself 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 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 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
