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 are two stocks with the fundamentals to back up their performance and one that may correct.
One Momentum Stock to Sell:
Bally's (BALY)
One-Month Return: +19.1%
Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE: BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms.
Why Should You Sell BALY?
- Muted 2.5% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Bally's is trading at $12.95 per share, or 1.7x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BALY doesn’t pass our bar.
Two Momentum Stocks to Buy:
Super Micro (SMCI)
One-Month Return: +11.8%
Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.
Why Are We Bullish on SMCI?
- Impressive 75.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Enormous revenue base of $21.97 billion provides significant distribution advantages
- Free cash flow margin is now positive, indicating the company has achieved financial self-sustainability
Super Micro’s stock price of $52.40 implies a valuation ratio of 20.4x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Oscar Health (OSCR)
One-Month Return: +4.9%
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Should You Buy OSCR?
- Market share has increased this cycle as its 47% annual revenue growth over the last two years was exceptional
- Adjusted operating margin expanded by 33.5 percentage points over the last five years as it scaled and became more efficient
- Earnings per share grew by 19.3% annually over the last four years, massively outpacing its peers
At $19.41 per share, Oscar Health trades at 0.4x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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