The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to new product launches, positive news, or even a dedicated social media following.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here is one stock with the fundamentals to back up its performance and two best left ignored.
Two Momentum Stocks to Sell:
Beyond Meat (BYND)
One-Month Return: +20.2%
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.
Why Is BYND Risky?
- Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Cash-burning history makes us doubt the long-term viability of its business model
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Beyond Meat’s stock price of $2.98 implies a valuation ratio of 0.7x forward price-to-sales. To fully understand why you should be careful with BYND, check out our full research report (it’s free).
Zebra (ZBRA)
One-Month Return: +18.2%
Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.
Why Should You Dump ZBRA?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 2.2% annually
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $295.94 per share, Zebra trades at 13.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why ZBRA doesn’t pass our bar.
One Momentum Stock to Watch:
Braze (BRZE)
One-Month Return: +19.4%
Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ: BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns.
Why Do We Like BRZE?
- Ability to secure long-term commitments with customers is evident in its 26.8% ARR growth over the last year
- Net revenue retention rate of 114% demonstrates its ability to expand within existing accounts through upsells and cross-sells
- Operating margin expanded by 10.1 percentage points over the last year as it scaled and became more efficient
Braze is trading at $37.17 per share, or 5.4x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
