The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.

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 are two stocks with the fundamentals to back up their performance and one that may correct.

One momentum stock to sell:

Brunswick (BC)

One-month return: +21.4%

Formerly known as Brunswick-Balke-Collender Company, Brunswick (NYSE: BC) is a designer and manufacturer of recreational marine products, including boats, engines, and marine parts.

Why Do We Steer Clear of BC?

1. Sales stagnated over the last five years and signal the need for new growth strategies
2. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 2.9 percentage points over the next year
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Brunswick’s stock price of $78.91 implies a valuation ratio of 16x forward P/E. To fully understand why you should be careful with BC, check out our full research report (it’s free).

Two momentum stocks to watch:

EPAM (EPAM)

One-month return: +50.9%

Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE: EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products.

Why Does EPAM Stand Out?

1. Annual revenue growth of 10.9% over the past five years was outstanding, reflecting market share gains this cycle
2. EPAM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
3. Industry-leading 20.4% return on capital demonstrates management’s skill in finding high-return investments

At $164.93 per share, EPAM trades at 9.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Accenture (ACN)

One-month return: +36.9%

With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE: ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.

Why Do We Like ACN?

1. 8% annual revenue growth over the last five years surpassed the sector average as its services resonated with customers
2. Massive revenue base of $74.18 billion makes it a well-known name that influences purchasing decisions
3. Industry-leading 33.9% return on capital demonstrates management’s skill in finding high-return investments

Accenture is trading at $264.20 per share, or 18x 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

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.