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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here is one stock with the fundamentals to back up its performance and two that may correct.
Two Momentum Stocks to Sell:
Ameresco (AMRC)
One-Month Return: +18%
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 Are We Cautious About AMRC?
- Issuance of new shares over the last five years caused its earnings per share to fall by 12% annually while its revenue grew
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Ameresco is trading at $29.81 per share, or 26.6x forward P/E. Check out our free in-depth research report to learn more about why AMRC doesn’t pass our bar.
Jefferies (JEF)
One-Month Return: +17.8%
Tracing its roots back to 1962 and rebranded from Leucadia National Corporation in 2018, Jefferies Financial Group (NYSE:JEF) is a global investment banking and capital markets firm that provides advisory services, securities trading, and asset management to corporations, institutions, and wealthy individuals.
Why Are We Wary of JEF?
- 1.8% annual revenue growth over the last five years was slower than its financials peers
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 7.2% annually while its revenue grew
At $51.50 per share, Jefferies trades at 13.8x forward P/E. To fully understand why you should be careful with JEF, check out our full research report (it’s free).
One Momentum Stock to Watch:
Tutor Perini (TPC)
One-Month Return: +0.3%
Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE:TPC) is a civil and building construction company offering diversified general contracting and design-build services.
Why Could TPC Be a Winner?
- Impressive 17% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 102% annually
- Free cash flow margin expanded by 12.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Tutor Perini’s stock price of $80.75 implies a valuation ratio of 18.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum 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.