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 are two stocks we think live up to the hype and one best left ignored.
One Momentum Stock to Sell:
Portillo's (PTLO)
One-Month Return: +24%
Begun as a Chicago hot dog stand in 1963, Portillo’s (NASDAQ: PTLO) is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes.
Why Do We Avoid PTLO?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Investment activity picked up over the last year, pressuring its weak free cash flow margin of -0.1%
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Portillo’s stock price of $4.85 implies a valuation ratio of 20.3x forward P/E. Dive into our free research report to see why there are better opportunities than PTLO.
Two Momentum Stocks to Watch:
Tenet Healthcare (THC)
One-Month Return: +28.1%
With a network spanning nine states and serving primarily urban and suburban communities, Tenet Healthcare (NYSE: THC) operates a nationwide network of hospitals, ambulatory surgery centers, and outpatient facilities providing acute care and specialty healthcare services.
Why Does THC Stand Out?
- Share repurchases over the last five years enabled its annual earnings per share growth of 16.8% to outpace its revenue gains
- Free cash flow margin expanded by 12.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- ROIC punches in at 22.5%, illustrating management’s expertise in identifying profitable investments, and its returns are growing as it capitalizes on even better market opportunities
At $208.75 per share, Tenet Healthcare trades at 11.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Amphenol (APH)
One-Month Return: +10%
With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.
Why Is APH a Top Pick?
- Annual revenue growth of 42.1% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 55.5% over the last two years outstripped its revenue performance
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
Amphenol is trading at $157.98 per share, or 33.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
