The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here is one stock with lasting competitive advantages and two that may correct.

Two Momentum Stocks to Sell:

Jamf (JAMF)

One-Month Return: +22%

With its name playfully derived from "Just Another Management Framework," Jamf (NASDAQ: JAMF) provides software that helps organizations deploy, manage, and secure Apple devices across their workforce while maintaining a seamless user experience.

Why Are We Wary of JAMF?

1. Underwhelming ARR growth of 12.2% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
2. Estimated sales growth of 9.6% for the next 12 months implies demand will slow from its two-year trend
3. Suboptimal cost structure is highlighted by its history of operating margin losses

Jamf is trading at $12.88 per share, or 2.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than JAMF.

Quest Resource (QRHC)

One-Month Return: +34.1%

Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ: QRHC) is a provider of waste and recycling services.

Why Do We Steer Clear of QRHC?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 3.6% annually over the last two years
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $1.73 per share, Quest Resource trades at 43.3x forward P/E. To fully understand why you should be careful with QRHC, check out our full research report (it’s free for active Edge members).

One Momentum Stock to Buy:

Globalstar (GSAT)

One-Month Return: +26%

Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ: GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.

Why Are We Bullish on GSAT?

1. Annual revenue growth of 15.6% over the last five years was superb and indicates its market share increased during this cycle
2. Earnings per share have massively outperformed its peers over the last five years, increasing by 15.2% annually
3. GSAT is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business

Globalstar’s stock price of $56.65 implies a valuation ratio of 47.3x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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