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1 Mooning Stock to Own for Decades and 2 Facing Headwinds

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Exciting developments are taking place for the stocks in this article. They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.

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 with lasting competitive advantages and two that may correct.

Two Momentum Stocks to Sell:

Sensata Technologies (ST)

One-Month Return: +15.2%

Originally a temperature sensor control maker and a subsidiary of Texas Instruments for 60 years, Sensata Technology Holdings (NYSE: ST) is a leading supplier of analog sensors used in industrial and transportation applications, best known for its dominant position in the tire pressure monitoring systems in cars.

Why Should You Dump ST?

  1. Sales tumbled by 4.8% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.9%
  3. Gross margin of 30.2% reflects its high production costs

Sensata Technologies’s stock price of $33.22 implies a valuation ratio of 9.3x forward P/E. Read our free research report to see why you should think twice about including ST in your portfolio.

BOK Financial (BOKF)

One-Month Return: +12%

Tracing its roots back to 1910 when Oklahoma was still a young state, BOK Financial (NASDAQ: BOKF) is a regional bank holding company that provides commercial banking, consumer banking, and wealth management services across eight states in the central and southwestern US.

Why Are We Out on BOKF?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
  2. Annual net interest income growth of 3.7% over the last five years was below our standards for the banking sector
  3. Sales over the last two years were less profitable as its earnings per share fell by 4.8% annually while its revenue was flat

BOK Financial is trading at $119.28 per share, or 1.2x forward P/B. To fully understand why you should be careful with BOKF, check out our full research report (it’s free for active Edge members).

One Momentum Stock to Buy:

CECO Environmental (CECO)

One-Month Return: +15.9%

With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ: CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.

Why Will CECO Beat the Market?

  1. Annual revenue growth of 19% over the last two years was superb and indicates its market share increased during this cycle
  2. Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
  3. Historical investments are beginning to pay off as its returns on capital are growing

At $58.79 per share, CECO Environmental trades at 43.5x 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

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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 Tecnoglass (+1,754% 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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