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. Keeping that in mind, here is one stock with lasting competitive advantages and two not so much.

Two Momentum Stocks to Sell:

Great Lakes Dredge & Dock (GLDD)

One-Month Return: +19.5%

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ: GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Why Do We Steer Clear of GLDD?

1. Annual revenue growth of 1.8% over the last five years was below our standards for the industrials sector
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Great Lakes Dredge & Dock is trading at $11.40 per share, or 16.3x forward P/E. Dive into our free research report to see why there are better opportunities than GLDD.

Commercial Vehicle Group (CVGI)

One-Month Return: +52.6%

Formed from a partnership between two distinct companies, CVG (NASDAQ: CVGI) offers various components used in vehicles and systems used in warehouses.

Why Do We Think CVGI Will Underperform?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.8% annually over the last five years
2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Commercial Vehicle Group’s stock price of $1.39 implies a valuation ratio of 9.9x forward P/E. Check out our free in-depth research report to learn more about why CVGI doesn’t pass our bar.

One Momentum Stock to Watch:

Warby Parker (WRBY)

One-Month Return: +28.2%

Founded in 2010, Warby Parker (NYSE: WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.

Why Could WRBY Be a Winner?

1. Fast expansion of new stores indicates an aggressive approach to attacking untapped market opportunities
2. Earnings growth has massively outpaced its peers over the last three years as its EPS has compounded at 62.4% annually
3. Free cash flow margin expanded by 3.4 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends

At $21.74 per share, Warby Parker trades at 57.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.