The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.
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 with lasting competitive advantages and one not so much.
One Momentum Stock to Sell:
Teladoc (TDOC)
One-Month Return: +30%
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE: TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Why Are We Hesitant About TDOC?
- Sales stagnated over the last three years and signal the need for new growth strategies
- Customer spending has dipped by 9% on average as it focused on growing its users
- Estimated sales for the next 12 months are flat and imply a softer demand environment
At $9.14 per share, Teladoc trades at 6.6x forward EV/EBITDA. If you’re considering TDOC for your portfolio, see our FREE research report to learn more.
Two Momentum Stocks to Watch:
BrightSpring Health Services (BTSG)
One-Month Return: +21.9%
Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.
Why Is BTSG on Our Radar?
- Impressive 22.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Economies of scale give it some operating leverage when demand rises
- Forecasted revenue growth of 14.1% for the next 12 months indicates its momentum over the last two years is sustainable
BrightSpring Health Services is trading at $73.87 per share, or 40.4x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
EVERTEC (EVTC)
One-Month Return: +20.5%
Operating one of Latin America's leading PIN debit networks called ATH, EVERTEC (NYSE: EVTC) is a payment transaction processor and financial technology provider that enables merchants and financial institutions across Latin America and the Caribbean to accept and process electronic payments.
Why Will EVTC Beat the Market?
- Solid 13.3% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Earnings per share have outperformed the peer group average over the last two years, increasing by 13% annually
- Industry-leading 28.5% return on equity demonstrates management’s skill in finding high-return investments
EVERTEC’s stock price of $28.85 implies a valuation ratio of 6.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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.
