2 Momentum Stocks with Exciting Potential and 1 We Question
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. On that note, here are two stocks we think live up to the hype and one best left ignored.
One Momentum Stock to Sell:
Hub Group (HUBG)
One-Month Return: +12%
Started with $10,000, Hub Group (NASDAQ:HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.
Why Do We Avoid HUBG?
- Annual sales declines of 9% for the past two years show its products and services struggled to connect with the market during this cycle
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 28% annually, worse than its revenue
- Eroding returns on capital suggest its historical profit centers are aging
Hub Group’s stock price of $49.24 implies a valuation ratio of 26.6x forward P/E. Read our free research report to see why you should think twice about including HUBG in your portfolio.
Two Momentum Stocks to Watch:
Medpace (MEDP)
One-Month Return: +12.6%
Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ:MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.
Why Is MEDP Interesting?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 17.2% over the past two years
- Share repurchases over the last five years enabled its annual earnings per share growth of 29.6% to outpace its revenue gains
- Free cash flow margin grew by 6 percentage points over the last five years, giving the company more chips to play with
At $602.03 per share, Medpace trades at 28.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
CRA (CRAI)
One-Month Return: +18.7%
Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ:CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy.
Why Does CRAI Stand Out?
- Annual revenue growth of 9.5% over the past two years was outstanding, reflecting market share gains this cycle
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 18.4% return on capital demonstrates management’s skill in finding high-return investments
CRA is trading at $170.98 per share, or 18.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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 meet 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.