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 the fundamentals to back up their performance and one not so much.
One Momentum Stock to Sell:
Enova (ENVA)
One-Month Return: +46.5%
Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International (NYSE: ENVA) provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.
Why Are We Hesitant About ENVA?
- Incremental sales over the last five years were less profitable as its 8.5% annual earnings per share growth lagged its revenue gains
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Enova is trading at $240.68 per share, or 13.7x forward P/E. Dive into our free research report to see why there are better opportunities than ENVA.
Two Momentum Stocks to Watch:
Inter Parfums (IPAR)
One-Month Return: +21%
With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ: IPAR) manufactures and distributes fragrances worldwide.
Why Is IPAR on Our Radar?
- Products command premium prices and result in a top-tier gross margin of 59.7%
- Robust free cash flow margin of 14.4% gives it many options for capital deployment
- Industry-leading 26.4% return on capital demonstrates management’s skill in finding high-return investments
At $111.77 per share, Inter Parfums trades at 21.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Oscar Health (OSCR)
One-Month Return: +23.8%
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Is OSCR a Top Pick?
- Market share has increased this cycle as its 42.6% annual revenue growth over the last two years was exceptional
- Earnings growth has trumped its peers over the last four years as its EPS has compounded at 31.5% annually
- Free cash flow margin expanded by 19.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Oscar Health’s stock price of $28.45 implies a valuation ratio of 26.8x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
