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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here is one stock we think lives up to the hype and two best left ignored.
Two Momentum Stocks to Sell:
MarineMax (HZO)
One-Month Return: +15.1%
Appropriately headquartered in Clearwater, Florida, MarineMax (NYSE:HZO) sells boats, yachts, and other marine products.
Why Are We Out on HZO?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Earnings per share have dipped by 54.5% annually over the past three years, which is concerning because stock prices follow EPS over the long term
- 10× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $28.17 per share, MarineMax trades at 40.2x forward P/E. To fully understand why you should be careful with HZO, check out our full research report (it’s free).
SunOpta (STKL)
One-Month Return: +28%
Committed to clean-label foods, SunOpta (NASDAQ:STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products.
Why Do We Think STKL Will Underperform?
- Annual sales declines of 1.6% for the past three years show its products struggled to connect with the market
- Modest revenue base of $792.4 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Gross margin of 15.4% is below its competitors, leaving less money to invest in areas like marketing and production facilities
SunOpta is trading at $4.84 per share, or 28.3x forward P/E. Check out our free in-depth research report to learn more about why STKL doesn’t pass our bar.
One Momentum Stock to Watch:
AAR (AIR)
One-Month Return: +24.3%
The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE:AIR) is a provider of aircraft maintenance services
Why Are We Positive On AIR?
- Impressive 17% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Market share will likely rise over the next 12 months as its expected revenue growth of 15.6% is robust
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 17.9% annually
AAR’s stock price of $105.75 implies a valuation ratio of 21.1x 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
Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.