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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here is one stock with lasting competitive advantages and two not so much.
Two Momentum Stocks to Sell:
Winnebago (WGO)
One-Month Return: +11.6%
Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE: WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.
Why Do We Pass on WGO?
- Sales tumbled by 10.5% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share fell by 8.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Waning returns on capital imply its previous profit engines are losing steam
Winnebago is trading at $33.55 per share, or 14.1x forward P/E. Read our free research report to see why you should think twice about including WGO in your portfolio.
Lemonade (LMND)
One-Month Return: +46.9%
Built on the principle of giving back unused premiums to charitable causes selected by policyholders, Lemonade (NYSE: LMND) is a technology-driven insurance company that offers homeowners, renters, pet, car, and life insurance through an AI-powered digital platform.
Why Does LMND Worry Us?
- Incremental sales over the last two years were less profitable as its 17.4% annual earnings per share growth lagged its revenue gains
- Annual book value per share declines of 7.2% for the past five years show its capital management struggled during this cycle
- Negative return on equity shows management lost money while trying to expand the business
Lemonade’s stock price of $70.71 implies a valuation ratio of 10.4x forward P/B. If you’re considering LMND for your portfolio, see our FREE research report to learn more.
One Momentum Stock to Buy:
Amphenol (APH)
One-Month Return: +7.6%
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 Are We Backing APH?
- Annual revenue growth of 29.7% 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 40.2% over the last two years outstripped its revenue performance
- Strong free cash flow margin of 15% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $135.19 per share, Amphenol trades at 35.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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