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. All that said, here is one stock with the fundamentals to back up its performance and two not so much.
Two Momentum Stocks to Sell:
C.H. Robinson Worldwide (CHRW)
One-Month Return: +17.5%
Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ:CHRW) offers freight transportation and logistics services.
Why Do We Steer Clear of CHRW?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 8% annually over the last two years
- High input costs result in an inferior gross margin of 7.3% that must be offset through higher volumes
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $116.78 per share, C.H. Robinson Worldwide trades at 23.6x forward P/E. Check out our free in-depth research report to learn more about why CHRW doesn’t pass our bar.
Supernus Pharmaceuticals (SUPN)
One-Month Return: +24.5%
With a diverse portfolio of eight FDA-approved medications targeting neurological conditions, Supernus Pharmaceuticals (NASDAQ:SUPN) develops and markets treatments for central nervous system disorders including epilepsy, ADHD, Parkinson's disease, and migraine.
Why Do We Think Twice About SUPN?
- Sales trends were unexciting over the last two years as its 2.4% annual growth was below the typical healthcare company
- Modest revenue base of $665.1 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Supernus Pharmaceuticals is trading at $41.23 per share, or 20.7x forward P/E. Dive into our free research report to see why there are better opportunities than SUPN.
One Momentum Stock to Watch:
Incyte (INCY)
One-Month Return: +14.3%
Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.
Why Are We Fans of INCY?
- 14.2% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Share repurchases over the last five years enabled its annual earnings per share growth of 105% to outpace its revenue gains
- Free cash flow margin jumped by 6.2 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Incyte’s stock price of $78.39 implies a valuation ratio of 12.8x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound 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 Comfort Systems (+782% 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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