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1 Mooning Stock on Our Buy List and 2 That Underwhelm

GIC Cover Image

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 that may correct.

Two Momentum Stocks to Sell:

Global Industrial (GIC)

One-Month Return: +38%

Formerly known as Systemax, Global Industrial (NYSE: GIC) distributes industrial and commercial products to businesses and institutions.

Why Are We Out on GIC?

  1. Sales trends were unexciting over the last two years as its 6.9% annual growth was below the typical industrials company
  2. Incremental sales over the last two years were much less profitable as its earnings per share fell by 2.3% annually while its revenue grew
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Global Industrial is trading at $37.40 per share, or 21.6x forward P/E. If you’re considering GIC for your portfolio, see our FREE research report to learn more.

Hilltop Holdings (HTH)

One-Month Return: +18.2%

Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings (NYSE: HTH) is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.

Why Should You Dump HTH?

  1. Net interest income stagnated over the last five years and signal the need for new growth strategies
  2. Overall productivity is expected to decrease over the next year as Wall Street thinks its efficiency ratio will degrade by 32.3 percentage points
  3. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

Hilltop Holdings’s stock price of $35.20 implies a valuation ratio of 1x forward P/B. Read our free research report to see why you should think twice about including HTH in your portfolio.

One Momentum Stock to Buy:

Oscar Health (OSCR)

One-Month Return: +24.5%

Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.

Why Is OSCR a Good Business?

  1. Annual revenue growth of 37.4% over the past two years was outstanding, reflecting market share gains this cycle
  2. Adjusted operating margin expanded by 24.1 percentage points over the last five years as it scaled and became more efficient
  3. Earnings per share grew by 19.3% annually over the last four years, massively outpacing its peers

At $17.23 per share, Oscar Health trades at 113.1x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

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 Exlservice (+354% 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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