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. On that note, here are two stocks we think live up to the hype and one that may correct.
One Momentum Stock to Sell:
Sphere Entertainment (SPHR)
One-Month Return: +26.6%
Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE:SPHR) hosts live entertainment events and distributes content across various media platforms.
Why Does SPHR Fall Short?
- 8.5% annual revenue growth over the last five years was slower than its consumer discretionary peers
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Earnings per share fell by 50.8% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Sphere Entertainment’s stock price of $77 implies a valuation ratio of 10x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including SPHR in your portfolio.
Two Momentum Stocks to Buy:
SPX Technologies (SPXC)
One-Month Return: +24.4%
With roots dating back to 1912 as the Piston Ring Company, SPX Technologies (NYSE:SPXC) supplies specialized infrastructure equipment for HVAC systems and detection and measurement applications across industrial, commercial, and utility markets.
Why Is SPXC a Top Pick?
- Impressive 12.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Operating margin expanded by 8.5 percentage points over the last five years as it scaled and became more efficient
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 23% annually
SPX Technologies is trading at $224.85 per share, or 30.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Natera (NTRA)
One-Month Return: +19.4%
Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ:NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.
Why Is NTRA a Good Business?
- Products are reaching more customers as its tests processed averaged 19.6% growth over the past two years
- Adjusted operating margin improvement of 32 percentage points over the last two years demonstrates its ability to scale efficiently
- Free cash flow flipped to positive over the last five years, showing the company has crossed a key inflection point
At $208 per share, Natera trades at 11.4x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 6 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-micro-cap company Tecnoglass (+1,754% 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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