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. All that said, here is one stock we think lives up to the hype and two not so much.
Two Momentum Stocks to Sell:
AMC Networks (AMCX)
One-Month Return: +26%
Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ:AMCX) is a broadcaster producing a diverse range of television shows and movies.
Why Is AMCX Risky?
- Annual revenue declines of 3.9% over the last five years indicate problems with its market positioning
- Free cash flow margin is forecasted to shrink by 3.3 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
AMC Networks is trading at $8.74 per share, or 5x forward P/E. To fully understand why you should be careful with AMCX, check out our full research report (it’s free).
Rogers (ROG)
One-Month Return: +18.1%
With roots dating back to 1832, making it one of America's oldest continuously operating companies, Rogers (NYSE:ROG) designs and manufactures specialized engineered materials and components used in electric vehicles, telecommunications, renewable energy, and other high-performance applications.
Why Are We Out on ROG?
- Annual sales declines of 5.5% for the past two years show its products and services struggled to connect with the market during this cycle
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 7.6 percentage points
- Earnings per share have contracted by 13.9% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
At $120.90 per share, Rogers trades at 38.1x forward P/E. Check out our free in-depth research report to learn more about why ROG doesn’t pass our bar.
One Momentum Stock to Watch:
Seagate (STX)
One-Month Return: +43%
One of two remaining major hard drive manufacturers after decades of industry consolidation, Seagate (NASDAQ:STX) manufactures hard disk drives and solid state drives that store data in data centers, cloud systems, and consumer devices.
Why Are We Positive On STX?
- Market share has increased this cycle as its 24.7% annual revenue growth over the last two years was exceptional
- Projected revenue growth of 29.8% for the next 12 months indicates demand will rise above its two-year trend
- Operating margin expansion of 8 percentage points over the last five years shows the company optimized its expenses
Seagate’s stock price of $577.95 implies a valuation ratio of 32.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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.
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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.