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. On that note, here are two stocks we think live up to the hype and one best left ignored.
One Momentum Stock to Sell:
Orion (ORN)
One-Month Return: +22.4%
Established in 1994, Orion (NYSE:ORN) provides construction services for marine infrastructure and industrial projects.
Why Do We Pass on ORN?
- Backlog has dropped by 1.7% on average over the past two years, suggesting it’s losing orders as competition picks up
- Issuance of new shares over the last five years caused its earnings per share to fall by 3.8% annually while its revenue grew
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $12.23 per share, Orion trades at 48.1x forward P/E. Dive into our free research report to see why there are better opportunities than ORN.
Two Momentum Stocks to Buy:
Nextpower (NXT)
One-Month Return: +26%
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextpower (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Is NXT a Good Business?
- Backlog has averaged 42.3% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Free cash flow margin expanded by 22.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital reflect management’s ability to monetize investments
Nextpower’s stock price of $116.88 implies a valuation ratio of 27.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Pathward Financial (CASH)
One-Month Return: +25.8%
Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ:CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options.
Why Are We Backing CASH?
- Annual net interest income growth of 13.7% over the last five years beat the sector average and underscores the value of its loans
- Differentiated product suite leads to a Strong performance of its loan book results in a High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 7.1%
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 25% exceeded its revenue gains over the last five years
Pathward Financial is trading at $90.40 per share, or 2.1x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.