
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. Keeping that in mind, here is one stock we think lives up to the hype and two not so much.
Two Momentum Stocks to Sell:
Bumble (BMBL)
One-Month Return: +4.4%
Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ: BMBL) is a leading dating app built with women at the center.
Why Does BMBL Fall Short?
- Competition may be pulling attention away from its platform as its 1.5% average growth in paying users was choppy
- Demand has fallen off a cliff over the last two years as its average revenue per buyer fell by 26.5% annually while it struggled to expand its customer base
- Projected sales decline of 11.1% for the next 12 months points to a tough demand environment ahead
Bumble’s stock price of $3.18 implies a valuation ratio of 2.9x forward EV/EBITDA. If you’re considering BMBL for your portfolio, see our FREE research report to learn more.
Fastly (FSLY)
One-Month Return: +28.5%
Taking its name from the core advantage it delivers to customers, Fastly (NYSE: FSLY) operates an edge cloud platform that processes, secures, and delivers web content as close to end users as possible, enabling faster digital experiences.
Why Do We Pass on FSLY?
- Below-average net revenue retention rate of 105% suggests it has some trouble expanding within existing accounts
- Gross margin of 57.1% is way below its competitors, leaving less money to invest in areas like marketing and R&D
- Persistent operating margin losses suggest the business manages its expenses poorly
Fastly is trading at $27.20 per share, or 6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than FSLY.
One Momentum Stock to Watch:
Intuit (INTU)
One-Month Return: -1%
Originally named after its founding product "Intuitive for the first-time user," Intuit (NASDAQ: INTU) provides financial management software and services including TurboTax, QuickBooks, Credit Karma, and Mailchimp to help consumers and small businesses manage their finances.
Why Does INTU Stand Out?
- Average billings growth of 17.6% over the last year enhances its liquidity and shows there is steady demand for its products
- Healthy operating margin of 27.1% shows it’s a well-run company with efficient processes, and its rise over the last year was fueled by some leverage on its fixed costs
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $414.75 per share, Intuit trades at 5.4x forward price-to-sales. Is now a good time to buy? 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 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% 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.