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.

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 with lasting competitive advantages and two best left ignored.

Two momentum stocks to sell:

PagerDuty (PD)

One-month return: +14.2%

Born from the frustration of developers being woken up by unprioritized alerts, PagerDuty (NYSE: PD) is a digital operations management platform that helps organizations detect and respond to IT incidents, outages, and other critical issues in real-time.

Why Do We Think PD Will Underperform?

1. Offerings struggled to generate meaningful interest as its average billings growth of 1.1% over the last year did not impress
2. Estimated sales growth of 1.1% for the next 12 months implies demand will slow from its two-year trend
3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 3.8 percentage points

At $17.24 per share, PagerDuty trades at 2.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PD.

Boston Beer (SAM)

One-month return: +20.9%

Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE: SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.

Why Do We Avoid SAM?

1. Annual sales declines of 2.6% for the past three years show its products struggled to connect with the market
2. Overall productivity fell over the last year as its plummeting sales were accompanied by a decline in its operating margin
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up

Boston Beer’s stock price of $198.33 implies a valuation ratio of 19x forward P/E. Check out our free in-depth research report to learn more about why SAM doesn’t pass our bar.

One momentum stock to buy:

Abercrombie and Fitch (ANF)

One-month return: +23.1%

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Why Is ANF a Top Pick?

1. Comparable store sales rose by 5% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
2. Its collection of products is difficult to replicate at scale and leads to a best-in-class gross margin of 63.2%
3. Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Abercrombie and Fitch is trading at $165.77 per share, or 12.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks we like even more

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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.