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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here is one stock with the fundamentals to back up its performance and two best left ignored.
Two momentum stocks to sell:
AMN Healthcare Services (AMN)
One-Month Return: +40.1%
With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE: AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.
Why Does AMN Give Us Pause?
- Declining travelers on assignment over the past two years indicate demand is soft and that the company may need to revise its strategy
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
AMN Healthcare Services’s stock price of $48.01 implies a valuation ratio of 55.1x forward P/E. To fully understand why you should be careful with AMN, check out our full research report (it’s free).
RLI (RLI)
One-Month Return: +15.9%
Founded in 1965 and named after its original focus on "replacement lens insurance" for contact lens wearers, RLI (NYSE: RLI) is a specialty insurance company that underwrites property, casualty, and surety products through wholesale brokers, independent agents, and carrier partnerships.
Why Does RLI Fall Short?
- 6.1% annualized net premiums earned growth over the last two years lagged behind its insurance peers
- Incremental sales over the last two years were less profitable as its 3.5% annual earnings per share growth lagged its revenue gains
- Annual book value per share declines of 1.6% for the past two years show its capital management struggled during this cycle
At $64.86 per share, RLI trades at 3.7x forward P/B. If you’re considering RLI for your portfolio, see our FREE research report to learn more.
One momentum stock to buy:
monday.com (MNDY)
One-Month Return: +34.8%
With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com (NASDAQ: MNDY) is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces.
Why Are We Bullish on MNDY?
- ARR growth averaged 24.3% over the last year, showing customers are willing to take multi-year bets on its software
- Superior software functionality and low servicing costs are reflected in its best-in-class gross margin of 88.7%
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
monday.com is trading at $106.55 per share, or 3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks we like even more
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
