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. All that said, here are two stocks we think live up to the hype and one not so much.
One Momentum Stock to Sell:
Landstar (LSTR)
One-Month Return: +19%
Covering billions of miles throughout North America, Landstar (NASDAQ: LSTR) is a transportation company specializing in freight and last-mile delivery services.
Why Do We Steer Clear of LSTR?
- Sales tumbled by 2.8% annually over the last two years, showing market trends are working against it during this cycle
- Earnings per share fell by 8.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Eroding returns on capital suggest its historical profit centers are aging
At $218.17 per share, Landstar trades at 36.9x forward P/E. If you’re considering LSTR for your portfolio, see our FREE research report to learn more.
Two Momentum Stocks to Buy:
First Solar (FSLR)
One-Month Return: +25.5%
Headquartered in Arizona, First Solar (NASDAQ: FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.
Why Is FSLR a Good Business?
- Annual revenue growth of 23.3% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow flipped to positive over the last five years, indicating the company has achieved financial self-sustainability
- Returns on capital are climbing as management makes more lucrative bets
First Solar is trading at $276 per share, or 16.4x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Humana (HUM)
One-Month Return: +26%
With over 80% of its revenue derived from federal government contracts, Humana (NYSE: HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Why Are We Bullish on HUM?
- Solid 13.6% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Unparalleled scale of $137.3 billion in revenue enables it to spread administrative costs across a larger membership base
- Projected revenue growth of 19.4% for the next 12 months is above its two-year trend, pointing to accelerating demand
Humana’s stock price of $346.50 implies a valuation ratio of 33.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.
