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. Keeping that in mind, here are two stocks we think live up to the hype and one best left ignored.
One Momentum Stock to Sell:
Littelfuse (LFUS)
One-Month Return: +21.3%
The developer of the first blade-type automotive fuse, Littelfuse (NASDAQ:LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries.
Why Does LFUS Worry Us?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Earnings per share have contracted by 4.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $388.99 per share, Littelfuse trades at 29.7x forward P/E. Read our free research report to see why you should think twice about including LFUS in your portfolio.
Two Momentum Stocks to Watch:
TD SYNNEX (SNX)
One-Month Return: +40.4%
Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE:SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.
Why Are We Fans of SNX?
- Impressive 25.6% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Massive revenue base of $65.14 billion makes it a well-known name that influences purchasing decisions
- Share buybacks propelled its annual earnings per share growth to 15.6%, which outperformed its revenue gains over the last two years
TD SYNNEX’s stock price of $214.57 implies a valuation ratio of 12.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Payoneer (PAYO)
One-Month Return: +18.8%
Founded during the early days of global e-commerce in 2005 to solve international payment challenges, Payoneer (NASDAQ:PAYO) provides financial technology services that enable small and medium-sized businesses to send and receive payments globally across borders.
Why Are We Backing PAYO?
- Impressive 26.3% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 24.6% exceeded its revenue gains over the last two years
Payoneer is trading at $5.31 per share, or 23.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
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 for 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 (+1,326% between June 2020 and June 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.