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.
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 lasting competitive advantages and two not so much.
Two Momentum Stocks to Sell:
Zurn Elkay (ZWS)
One-Month Return: +20.7%
Claiming to have saved more than 30 billion gallons of water, Zurn Elkay (NYSE:ZWS) provides water management solutions to various industries.
Why Is ZWS Risky?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Performance over the past five years was negatively impacted by new share issuances as its earnings per share dropped by 6.1% annually, worse than its revenue
- Free cash flow margin dropped by 5.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
At $44.42 per share, Zurn Elkay trades at 31.4x forward P/E. If you’re considering ZWS for your portfolio, see our FREE research report to learn more.
NCR Atleos (NATL)
One-Month Return: +42.6%
Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE:NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.
Why Are We Out on NATL?
- Annual revenue growth of 1.8% over the last two years was below our standards for the financials sector
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 11.8% annually
NCR Atleos is trading at $38.30 per share, or 8.5x forward P/E. Dive into our free research report to see why there are better opportunities than NATL.
One Momentum Stock to Buy:
Stride (LRN)
One-Month Return: +28.7%
Formerly known as K12, Stride (NYSE:LRN) is an education technology company providing education solutions through digital platforms.
Why Do We Love LRN?
- Increase in enrollments shows customers are eagerly embracing its offerings
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 56.8% annually, topping its revenue gains
- Free cash flow margin expanded by 8.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Stride’s stock price of $167 implies a valuation ratio of 21.4x forward P/E. Is now the right time to buy? Find out in our full 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-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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