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 we think lives up to the hype and two best left ignored.
Two momentum stocks to sell:
Teladoc (TDOC)
One-month return: +60.8%
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE: TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Why Are We Hesitant About TDOC?
- Products and services aren’t resonating with the market as its revenue declined by 1.5% annually over the last three years
- Customer spending has dipped by 9.7% on average as it focused on growing its users
- Sales are projected to tank by 4.6% over the next 12 months as its demand continues evaporating
Teladoc’s stock price of $9.26 implies a valuation ratio of 9.7x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than TDOC.
Antero Resources (AR)
One-month return: +2.4%
Holding roughly 521,000 net acres across West Virginia, Ohio, and Pennsylvania, Antero Resources (NYSE: AR) drills and produces natural gas, natural gas liquids, and oil from underground rock formations in the Appalachian Basin.
Why Does AR Fall Short?
- 6.5% annual revenue growth over the last five years was slower than its energy upstream and integrated energy peers
- Costs have risen faster than its revenue over the last five years, causing its EBITDA margin to decline by 10.8 percentage points
At $36.57 per share, Antero Resources trades at 8.2x forward P/E. To fully understand why you should be careful with AR, check out our full research report (it’s free).
One momentum stock to watch:
Nasdaq (NDAQ)
One-month return: +15.7%
Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ: NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.
Why Should NDAQ Be on Your Watchlist?
- Solid 12.4% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Share repurchases over the last two years enabled its annual earnings per share growth of 20.4% to outpace its revenue gains
- ROE punches in at 15.4%, illustrating management’s expertise in identifying profitable investments
Nasdaq is trading at $106.75 per share, or 24x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-quality stocks for all market conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
