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. Keeping that in mind, here is one stock with lasting competitive advantages and two that may correct.
Two Momentum Stocks to Sell:
Surgery Partners (SGRY)
One-Month Return: +22%
With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ: SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.
Why Does SGRY Give Us Pause?
- Disappointing unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Estimated sales growth of 3% for the next 12 months implies demand will slow from its two-year trend
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $14.64 per share, Surgery Partners trades at 91.1x forward P/E. Check out our free in-depth research report to learn more about why SGRY doesn’t pass our bar.
Perella Weinberg (PWP)
One-Month Return: +20.7%
Founded in 2006 by veteran investment bankers Joseph Perella and Peter Weinberg during a wave of boutique advisory firm launches, Perella Weinberg Partners (NASDAQ: PWP) is a global independent advisory firm that provides strategic and financial advice to corporations, financial sponsors, and government institutions.
Why Do We Think PWP Will Underperform?
- Earnings per share have contracted by 25.2% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
- Push for growth has led to negative returns on capital, signaling value destruction
Perella Weinberg is trading at $20.80 per share, or 19.5x forward P/E. If you’re considering PWP for your portfolio, see our FREE research report to learn more.
One Momentum Stock to Buy:
Euronet Worldwide (EEFT)
One-Month Return: +10.2%
Operating a global network of over 47,000 ATMs and 821,000 point-of-sale terminals across more than 60 countries, Euronet Worldwide (NASDAQ: EEFT) provides electronic payment solutions including ATM services, prepaid product processing, and international money transfer services.
Why Will EEFT Beat the Market?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 11.3% annual sales growth over the last five years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 28% exceeded its revenue gains over the last five years
- Industry-leading 19.3% return on equity demonstrates management’s skill in finding high-return investments
Euronet Worldwide’s stock price of $74.60 implies a valuation ratio of 7.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.
