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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here is one stock with the fundamentals to back up its performance and two not so much.
Two Momentum Stocks to Sell:
Vishay Intertechnology (VSH)
One-Month Return: +34.9%
Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE: VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.
Why Do We Pass on VSH?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.1% annually over the last two years
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 25.4% annually while its revenue grew
- Free cash flow margin shrank by 15.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Vishay Intertechnology is trading at $15.34 per share, or 7.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than VSH.
Delta (DAL)
One-Month Return: +31.8%
One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE: DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.
Why Should You Dump DAL?
- Number of revenue passenger miles has disappointed over the past two years, indicating weak demand for its offerings
- Projected sales decline of 1.4% for the next 12 months points to a tough demand environment ahead
- Push for growth has led to negative returns on capital, signaling value destruction
At $53.10 per share, Delta trades at 8.6x forward P/E. Check out our free in-depth research report to learn more about why DAL doesn’t pass our bar.
One Momentum Stock to Buy:
FTAI Aviation (FTAI)
One-Month Return: +18.6%
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.
Why Should You Buy FTAI?
- Market share has increased this cycle as its 44.9% annual revenue growth over the last two years was exceptional
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 73.8% outpaced its revenue gains
- Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability
FTAI Aviation’s stock price of $117.50 implies a valuation ratio of 20.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 176% over the last five years.
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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
