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

Two Momentum Stocks to Sell:

Magnachip (MX)

One-Month Return: +11.8%

With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE: MX) is a provider of analog and mixed-signal semiconductors.

Why Is MX Risky?

1. Sales tumbled by 18.5% annually over the last five years, showing market trends are working against its favor during this cycle
2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 19.3%
3. Cash burn has widened over the last five years, making us question whether it can reliably generate shareholder value

Magnachip is trading at $4.25 per share, or 0.8x forward price-to-sales. If you’re considering MX for your portfolio, see our FREE research report to learn more.

Opendoor (OPEN)

One-Month Return: +421%

Founded by real estate guru Eric Wu, Opendoor (NASDAQ: OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.

Why Do We Steer Clear of OPEN?

1. Sluggish trends in its homes purchased suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Opendoor’s stock price of $2.76 implies a valuation ratio of 0.4x forward price-to-sales. Read our free research report to see why you should think twice about including OPEN in your portfolio.

One Momentum Stock to Buy:

FirstSun Capital Bancorp (FSUN)

One-Month Return: +17%

Tracing its roots back to 1892 when it first opened its doors in Kansas, FirstSun Capital Bancorp (NASDAQ: FSUN) operates Sunflower Bank, providing commercial and consumer banking services to businesses and individuals across the Southwest region.

Why Is FSUN a Top Pick?

1. Annual net interest income growth of 20.5% over the last four years was superb and indicates its market share increased during this cycle
2. Differentiated product suite is reflected in its Strong performance of its loan book leads to a High-yielding loan book and low cost of funds lead to a top-tier net interest margin of 4.2%
3. Annual tangible book value per share growth of 12.1% over the last five years was superb and indicates its capital strength increased during this cycle

At $39.67 per share, FirstSun Capital Bancorp trades at 1x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2024 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 Comfort Systems (+782% 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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