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.
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 are two stocks we think live up to the hype and one best left ignored.
One Momentum Stock to Sell:
Global Industrial (GIC)
One-Month Return: +11.1%
Formerly known as Systemax, Global Industrial (NYSE: GIC) distributes industrial and commercial products to businesses and institutions.
Why Is GIC Risky?
- Muted 3.1% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 1.6% annually
- Diminishing returns on capital suggest its earlier profit pools are drying up
Global Industrial’s stock price of $33.87 implies a valuation ratio of 18.1x forward P/E. If you’re considering GIC for your portfolio, see our FREE research report to learn more.
Two Momentum Stocks to Watch:
Blue Bird (BLBD)
One-Month Return: +12.9%
With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.
Why Is BLBD a Top Pick?
- Market share has increased this cycle as its 14.3% annual revenue growth over the last five years was exceptional
- Free cash flow margin increased by 21 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Improving returns on capital reflect management’s ability to monetize investments
At $78.27 per share, Blue Bird trades at 15.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Corning (GLW)
One-Month Return: +45%
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE: GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Do We Watch GLW?
- Annual revenue growth of 12.6% over the last two years was superb and indicates its market share increased during this cycle
- Exciting sales outlook for the upcoming 12 months calls for 16.8% growth, an acceleration from its two-year trend
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 26.9% annually
Corning is trading at $256.24 per share, or 65.8x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
