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 we think lives up to the hype and two best left ignored.
Two Momentum Stocks to Sell:
Wix (WIX)
One-Month Return: +14.2%
Powering over 263 million registered users worldwide with its AI-driven tools, Wix (NASDAQ: WIX) provides a cloud-based platform that helps individuals and businesses create and manage professional websites without requiring coding skills.
Why Does WIX Worry Us?
- Products, pricing, or go-to-market strategy may need some adjustments as its 13.9% average billings growth over the last year was weak
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 17.5 percentage points
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 3.9 percentage points
Wix is trading at $76.17 per share, or 1.3x forward price-to-sales. If you’re considering WIX for your portfolio, see our FREE research report to learn more.
Optimum Communications (OPTU)
One-Month Return: +13.2%
Based in Long Island City, Optimum Communications (NYSE: OPTU) is a telecommunications company offering cable, internet, telephone, and television services across the United States.
Why Do We Steer Clear of OPTU?
- Performance surrounding its broadband subscribers has lagged its peers
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- High net-debt-to-EBITDA ratio of 8× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Optimum Communications’s stock price of $0.94 implies a valuation ratio of 7.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why OPTU doesn’t pass our bar.
One Momentum Stock to Buy:
Micron (MU)
One-Month Return: +11.8%
Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NASDAQ: MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.
Why Is MU a Good Business?
- Impressive 106% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 57.1% over the last five years outstripped its revenue performance
- Free cash flow margin expanded by 14.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $971.37 per share, Micron trades at 7.1x 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
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
