Great things are happening to the stocks in this article. They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here are two stocks we think live up to the hype and one that may correct.
One Momentum Stock to Sell:
U.S. Cellular (USM)
One-Month Return: +56.9%
Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, US Cellular (NYSE: USM) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services.
Why Do We Think USM Will Underperform?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 7% annually over the last five years
- Overall productivity fell over the last five years as its plummeting sales were accompanied by a decline in its adjusted operating margin
- Issuance of new shares over the last five years caused its earnings per share to fall by 16.5% annually, even worse than its revenue declines
At $77.01 per share, U.S. Cellular trades at Check out our free in-depth research report to learn more about why USM doesn’t pass our bar.
Two Momentum Stocks to Buy:
KLA Corporation (KLAC)
One-Month Return: +12.2%
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ: KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
Why Is KLAC a Top Pick?
- Impressive 16.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 60.6%
- Strong free cash flow margin of 30.8% enables it to reinvest or return capital consistently
KLA Corporation is trading at $1,151 per share, or 32.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
LPL Financial (LPLA)
One-Month Return: +16%
As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ: LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
Why Are We Bullish on LPLA?
- Annual revenue growth of 26.2% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 23.7% over the last five years outstripped its revenue performance
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
LPL Financial’s stock price of $372.40 implies a valuation ratio of 16.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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