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. Keeping that in mind, here are two stocks with lasting competitive advantages and one not so much.
One Momentum Stock to Sell:
Viavi Solutions (VIAV)
One-Month Return: +12.9%
Once known as JDS Uniphase before its 2015 rebranding, Viavi Solutions (NASDAQ: VIAV) provides testing, monitoring and assurance solutions for telecommunications, cloud, enterprise, military, and other critical networks and infrastructure.
Why Do We Think Twice About VIAV?
- 2.3% annual revenue growth over the last five years was slower than its industrials peers
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 3.1% annually while its revenue grew
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Viavi Solutions’s stock price of $29.67 implies a valuation ratio of 31.5x forward P/E. Read our free research report to see why you should think twice about including VIAV in your portfolio.
Two Momentum Stocks to Watch:
NCR Atleos (NATL)
One-Month Return: +4.9%
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 Do We Like NATL?
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 78.6% outpaced its revenue gains
At $44.32 per share, NCR Atleos trades at 9.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Phibro Animal Health (PAHC)
One-Month Return: -6.2%
With a portfolio of approximately 800 product lines serving farmers and veterinarians in 90 countries, Phibro Animal Health (NASDAQ: PAHC) develops, manufactures, and markets health products for livestock and companion animals, including antibacterials, vaccines, nutritional supplements, and mineral additives.
Why Are We Positive On PAHC?
- Annual revenue growth of 21.7% over the past two years was outstanding, reflecting market share gains this cycle
- Operating margin improvement of 9.2 percentage points over the last two years demonstrates its ability to scale efficiently
- Earnings per share grew by 16.4% annually over the last five years and trumped its peers
Phibro Animal Health trades at a stock price of $49.04. Is now a good time to buy? See for yourself 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
