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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here is one stock with the fundamentals to back up its performance and two that may correct.
Two Momentum Stocks to Sell:
Corcept (CORT)
One-Month Return: +20.7%
Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.
Why Does CORT Give Us Pause?
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 16.9 percentage points
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 2.8% annually
- Waning returns on capital imply its previous profit engines are losing steam
At $83.99 per share, Corcept trades at 47.6x forward P/E. Dive into our free research report to see why there are better opportunities than CORT.
Brighthouse Financial (BHF)
One-Month Return: +17.3%
Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial (NASDAQ: BHF) provides annuity contracts and life insurance products designed to help individuals protect wealth, generate income, and transfer assets.
Why Are We Cautious About BHF?
- Insurance offerings face significant market challenges this cycle as net premiums earned contracted by 1.9% annually over the last five years
- Book value per share tumbled by 15.1% annually over the last five years, showing insurance sector trends are working against its favor during this cycle
- Debt-to-equity ratio of 1.3× is concerningly high, indicating excessive leverage that could limit financial flexibility
Brighthouse Financial’s stock price of $55 implies a valuation ratio of 0.8x forward P/B. To fully understand why you should be careful with BHF, check out our full research report (it’s free).
One Momentum Stock to Watch:
Hims & Hers Health (HIMS)
One-Month Return: +20.2%
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE: HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Why Do We Watch HIMS?
- Customer growth averaged 43.3% over the past two years, showing its ability to "land" new contracts and potentially "expand" them later - a powerful one-two punch for sales
- Free cash flow margin jumped by 14.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Historical investments are beginning to pay off as its returns on capital are growing
Hims & Hers Health is trading at $54.50 per share, or 44.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive 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-small-cap company Exlservice (+354% 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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