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. Keeping that in mind, here is one stock we think lives up to the hype and two that may correct.
Two Momentum Stocks to Sell:
Bark (BARK)
One-Month Return: +50.3%
Making a name for itself with the BarkBox, Bark (NYSE:BARK) specializes in subscription-based, personalized pet products.
Why Should You Sell BARK?
- Sales trends were unexciting over the last five years as its 9.8% annual growth was below the typical consumer discretionary company
- Cash-burning history makes us doubt the long-term viability of its business model
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $0.87 per share, Bark trades at 39.6x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than BARK.
Avnet (AVT)
One-Month Return: +26.5%
With a century-long history of adapting to technological evolution, Avnet (NASDAQ:AVT) is a global electronic components distributor that connects manufacturers of semiconductors and other electronic parts with businesses that need these components.
Why Is AVT Not Exciting?
- Sales tumbled by 4.9% annually over the last two years, showing market trends are working against its favor during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Avnet’s stock price of $62.40 implies a valuation ratio of 11.1x forward P/E. If you’re considering AVT for your portfolio, see our FREE research report to learn more.
One Momentum Stock to Watch:
Western Digital (WDC)
One-Month Return: +32.6%
Founded in 1970 by a Motorola employee, Western Digital (NASDAQ: WDC) is a leading producer of hard disk drives, SSDs and flash memory.
Why Do We Like WDC?
- Market share is on track to rise over the next 12 months as its 30% projected revenue growth implies demand will accelerate from its two-year trend
- Operating margin increased by 16.1 percentage points over the last five years as it refined its cost structure
- Free cash flow margin increased by 14.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Western Digital is trading at $248.87 per share, or 25.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. 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 5 Strong Momentum 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.