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.

But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. 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:

Victoria's Secret (VSCO)

One-Month Return: +10.9%

Spun off from L Brands in 2020, Victoria’s Secret (NYSE: VSCO) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.

Why Does VSCO Fall Short?

1. Sales trends were unexciting over the last three years as its 1.1% annual growth was below the typical consumer retail company
2. Poor expense management has led to an operating margin of 4.5% that is below the industry average
3. Incremental sales over the last three years were much less profitable as its earnings per share fell by 16.2% annually while its revenue grew

Victoria's Secret’s stock price of $49.97 implies a valuation ratio of 14.5x forward P/E. If you’re considering VSCO for your portfolio, see our FREE research report to learn more.

PVH (PVH)

One-Month Return: +42.7%

Founded in 1881 by a husband and wife duo, PVH (NYSE: PVH) is a global fashion conglomerate with iconic brands like Calvin Klein and Tommy Hilfiger.

Why Do We Steer Clear of PVH?

1. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
2. Free cash flow margin is projected to show no improvement next year
3. Returns on capital haven’t budged, indicating management couldn’t drive additional value creation

PVH is trading at $89.02 per share, or 7.4x forward P/E. Read our free research report to see why you should think twice about including PVH in your portfolio.

One Momentum Stock to Buy:

Abercrombie and Fitch (ANF)

One-Month Return: +10.1%

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Why Is ANF a Top Pick?

1. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 10% over the past two years
2. Differentiated product assortment leads to a best-in-class gross margin of 62.8%
3. Share repurchases have amplified shareholder returns as its annual earnings per share growth exceeded its revenue gains over the last three years

At $93.58 per share, Abercrombie and Fitch trades at 9.1x forward P/E. Is now the time to initiate a position? 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 meeting 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.