The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here is one stock with the fundamentals to back up its performance and two that may correct.
Two Momentum Stocks to Sell:
Sabre (SABR)
One-Month Return: +28.9%
Originally a division of American Airlines, Sabre (NASDAQ: SABR) is a technology provider for the global travel and tourism industry.
Why Should You Sell SABR?
- Number of total bookings has disappointed over the past two years, indicating weak demand for its offerings
- Cash burn makes us question whether it can achieve sustainable long-term growth
- High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Sabre is trading at $2.21 per share, or 6.9x forward EV-to-EBITDA. If you’re considering SABR for your portfolio, see our FREE research report to learn more.
Ameresco (AMRC)
One-Month Return: +9.6%
Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE: AMRC) provides energy and renewable energy solutions for various sectors.
Why Do We Think Twice About AMRC?
- Issuance of new shares over the last five years caused its earnings per share to fall by 15.7% annually while its revenue grew
- Negative free cash flow raises questions about the return timeline for its investments
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $27.40 per share, Ameresco trades at 19.7x forward P/E. Check out our free in-depth research report to learn more about why AMRC doesn’t pass our bar.
One Momentum Stock to Watch:
IonQ (IONQ)
One-Month Return: +14.3%
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Are We Positive on IONQ?
- Market share has increased this cycle as its 181% annual revenue growth over the last two years was exceptional
- Notable projected revenue growth of 30.6% for the next 12 months hints at market share gains
- Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
IonQ’s stock price of $44.91 implies a valuation ratio of 51.6x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.
