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.

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 the fundamentals to back up its performance and two not so much.

Two Momentum Stocks to Sell:

Teladoc (TDOC)

One-Month Return: +15.1%

Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE: TDOC) is a telemedicine platform that facilitates remote doctor’s visits.

Why Are We Wary of TDOC?

1. Muted 1.7% annual revenue growth over the last three years shows its demand lagged behind its consumer internet peers
2. Focus on expanding its platform came at the expense of monetization as its average revenue per user fell by 8.5% annually
3. Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend

At $5.46 per share, Teladoc trades at 4.2x forward EV/EBITDA. If you’re considering TDOC for your portfolio, see our FREE research report to learn more.

Krispy Kreme (DNUT)

One-Month Return: +22.8%

Famous for its Original Glazed doughnuts and parent company of Insomnia Cookies, Krispy Kreme (NASDAQ: DNUT) is one of the most beloved and well-known fast-food chains in the world.

Why Is DNUT Risky?

1. Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
2. Negative free cash flow raises questions about the return timeline for its investments
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Krispy Kreme is trading at $3.72 per share, or 15.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why DNUT doesn’t pass our bar.

One Momentum Stock to Watch:

Coinbase (COIN)

One-Month Return: +18.5%

Widely regarded as the face of crypto, Coinbase (NASDAQ: COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.

Why Should COIN Be on Your Watchlist?

1. Remarkable 52% revenue growth over the last two years demonstrates its ability to capture significant market share
2. Superior platform functionality and low servicing costs are reflected in its best-in-class gross margin of 86%
3. Strong free cash flow margin of 36.3% enables it to reinvest or return capital consistently

Coinbase’s stock price of $202.98 implies a valuation ratio of 18x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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.