Exciting developments are taking place for the stocks in this article. They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.
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 lasting competitive advantages and two not so much.
Two Momentum Stocks to Sell:
Wolverine Worldwide (WWW)
One-Month Return: +16.2%
Founded in 1883, Wolverine Worldwide (NYSE: WWW) is a global footwear company with a diverse portfolio of brands including Merrell, Hush Puppies, and Saucony.
Why Should You Sell WWW?
- Products and services fail to spark excitement with consumers, as seen in its flat sales over the last five years
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 6.3% annually
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Wolverine Worldwide is trading at $19.76 per share, or 12.3x forward P/E. Check out our free in-depth research report to learn more about why WWW doesn’t pass our bar.
Itron (ITRI)
One-Month Return: +16.4%
Founded by a small group of engineers who wanted to build a more efficient way to read utility meters, Itron (NASDAQ: ITRI) offers energy and water management products for the utility industry, municipalities, and industrial customers.
Why Is ITRI Not Exciting?
- Sales tumbled by 1% annually over the last two years, showing market trends are working against it during this cycle
- Poor expense management has led to an operating margin of 6.8% that is below the industry average
- ROIC of 6.9% reflects management’s challenges in identifying attractive investment opportunities
At $100.97 per share, Itron trades at 15.6x forward P/E. To fully understand why you should be careful with ITRI, check out our full research report (it’s free).
One Momentum Stock to Watch:
Grid Dynamics (GDYN)
One-Month Return: +14.4%
With engineering centers across the Americas, Europe, and India serving Fortune 1000 companies, Grid Dynamics (NASDAQ: GDYN) provides technology consulting, engineering, and analytics services to help large enterprises modernize their technology systems and business processes.
Why Do We Like GDYN?
- Annual revenue growth of 15.2% over the last two years was superb and indicates its market share increased during this cycle
- Earnings per share grew by 14% annually over the last two years, comfortably beating the peer group average
- Historical investments are beginning to pay off as its returns on capital are growing
Grid Dynamics’s stock price of $6.77 implies a valuation ratio of 14.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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.
