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 we think lives up to the hype and two best left ignored.
Two Momentum Stocks to Sell:
Kohl's (KSS)
One-Month Return: +16.1%
Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE: KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.
Why Do We Avoid KSS?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Poor expense management has led to an operating margin of 3.4% that is below the industry average
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $19.22 per share, Kohl's trades at 13.2x forward P/E. Dive into our free research report to see why there are better opportunities than KSS.
Corcept (CORT)
One-Month Return: +32.5%
Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.
Why Does CORT Give Us Pause?
- Earnings per share fell by 16.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- 25.7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Diminishing returns on capital suggest its earlier profit pools are drying up
Corcept’s stock price of $113.83 implies a valuation ratio of 25.1x forward P/E. To fully understand why you should be careful with CORT, check out our full research report (it’s free).
One Momentum Stock to Buy:
Tidewater (TDW)
One-Month Return: +23.2%
Operating one of the world's largest fleets with over 200 vessels spanning 30 countries, Tidewater (NYSE: TDW) operates offshore service vessels that transport supplies, equipment, and workers to oil rigs and platforms.
Why Are We Bullish on TDW?
- Impressive 30.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Strong free cash flow margin of 14.7% enables it to reinvest or return capital consistently
Tidewater is trading at $91.59 per share, or 17.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
