2 Momentum Stocks with Solid Fundamentals and 1 We Turn Down
Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here are two stocks with the fundamentals to back up their performance and one that may correct.
One Stock to Sell:
HP (HPQ)
One-Month Return: +10.5%
Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE:HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.
Why Do We Steer Clear of HPQ?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Demand will likely fall over the next 12 months as Wall Street expects flat revenue
- Flat earnings per share over the last five years lagged its peers
At $31.86 per share, HP trades at 10.7x forward P/E. If you’re considering HPQ for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Match Group (MTCH)
One-Month Return: +2.9%
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ:MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Why Do We Like MTCH?
- Cost-efficient marketing campaigns allow it to target and onboard new users without spending heaps of money
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 37%, and its operating leverage amplified its profits over the last few years
- Strong free cash flow margin of 29.4% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
Match Group’s stock price of $42.43 implies a valuation ratio of 9.6x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
SM Energy (SM)
One-Month Return: +21.6%
Operating across three key regions with over 328,000 net acres under its control, SM Energy (NYSE:SM) explores for, develops, and produces oil, natural gas, and natural gas liquids primarily from shale formations in Texas and Utah.
Why Should You Buy SM?
- Impressive 16.7% annual revenue growth over the last ten years indicates it’s winning market share this cycle
- Highly-profitable operating model results in strong unit economics and a best-in-class gross margin of 86.8%
- EBITDA profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
SM Energy is trading at $37.74 per share, or 5.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.