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.
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 is one stock with the fundamentals to back up its performance and two best left ignored.
Two Momentum Stocks to Sell:
Wabash (WNC)
One-Month Return: +42.9%
With its first trailer reportedly built on two sawhorses, Wabash (NYSE: WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.
Why Do We Think WNC Will Underperform?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 29% declines over the past two years
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $9.85 per share, Wabash trades at 0.2x trailing 12-month price-to-sales. Check out our free in-depth research report to learn more about why WNC doesn’t pass our bar.
Kforce (KFRC)
One-Month Return: +26.6%
With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE: KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.
Why Should You Dump KFRC?
- Annual sales declines of 1.4% for the past five years show its products and services struggled to connect with the market during this cycle
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Waning returns on capital imply its previous profit engines are losing steam
Kforce is trading at $50.00 per share, or 20.1x forward P/E. To fully understand why you should be careful with KFRC, check out our full research report (it’s free).
One Momentum Stock to Buy:
JFrog (FROG)
One-Month Return: +17.9%
Named after the amphibian that continuously evolves from egg to tadpole to adult, JFrog (NASDAQ: FROG) provides a platform that helps organizations securely create, store, manage, and distribute software packages across any system.
Why Should You Buy FROG?
- Ability to secure long-term commitments with customers is evident in its 23.7% ARR growth over the last year
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Robust free cash flow margin of 26.9% gives it many options for capital deployment
JFrog’s stock price of $78.00 implies a valuation ratio of 14.4x forward price-to-sales. Is now the right 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.
