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. On that note, here is one stock with lasting competitive advantages and two not so much.

Two Momentum Stocks to Sell:

Zurn Elkay (ZWS)

One-Month Return: +20.7%

Claiming to have saved more than 30 billion gallons of water, Zurn Elkay (NYSE: ZWS) provides water management solutions to various industries.

Why Is ZWS Risky?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Performance over the past five years was negatively impacted by new share issuances as its earnings per share dropped by 6.1% annually, worse than its revenue
3. Free cash flow margin dropped by 5.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $44.42 per share, Zurn Elkay trades at 31.4x forward P/E. If you’re considering ZWS for your portfolio, see our FREE research report to learn more.

NCR Atleos (NATL)

One-Month Return: +42.6%

Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE: NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.

Why Are We Out on NATL?

1. Annual revenue growth of 1.8% over the last two years was below our standards for the financials sector
2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 11.8% annually

NCR Atleos is trading at $38.30 per share, or 8.5x forward P/E. Dive into our free research report to see why there are better opportunities than NATL.

One Momentum Stock to Buy:

Stride (LRN)

One-Month Return: +28.7%

Formerly known as K12, Stride (NYSE: LRN) is an education technology company providing education solutions through digital platforms.

Why Do We Love LRN?

1. Increase in enrollments shows customers are eagerly embracing its offerings
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 56.8% annually, topping its revenue gains
3. Free cash flow margin expanded by 8.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Stride’s stock price of $167 implies a valuation ratio of 21.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out 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 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-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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