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 we think lives up to the hype and two not so much.
Two Momentum Stocks to Sell:
Paramount (PSKY)
One-Month Return: +23.5%
Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ: PARA) is a major media conglomerate offering television, film production, and digital content across various global platforms.
Why Do We Avoid PSKY?
- Products and services aren't resonating with the market as its revenue declined by 2% annually over the last two years
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 23.5% annually while its revenue grew
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Paramount is trading at $16.11 per share, or 11.9x forward P/E. If you’re considering PSKY for your portfolio, see our FREE research report to learn more.
FirstCash (FCFS)
One-Month Return: +20.3%
Offering a financial lifeline to the unbanked and credit-constrained since 1988, FirstCash (NASDAQ: FCFS) operates pawn stores across the U.S. and Latin America while also providing retail point-of-sale payment solutions for credit-constrained consumers.
Why Are We Cautious About FCFS?
- Muted 7.4% annual revenue growth over the last two years shows its demand lagged behind its financials peers
- Tangible book value per share tumbled by 14.1% annually over the last five years, showing financials sector trends are working against its favor during this cycle
At $144.51 per share, FirstCash trades at 16.8x forward P/E. Dive into our free research report to see why there are better opportunities than FCFS.
One Momentum Stock to Watch:
Humana (HUM)
One-Month Return: +28.4%
With over 80% of its revenue derived from federal government contracts, Humana (NYSE: HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Why Could HUM Be a Winner?
- Annual revenue growth of 11.8% over the last five years was above the sector average and underscores its products and services value to customers
- Dominant market position is represented by its $123.1 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Humana’s stock price of $297.20 implies a valuation ratio of 20x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-micro-cap company Tecnoglass (+1,754% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
