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. All that said, here are two stocks we think live up to the hype and one not so much.
One Momentum Stock to Sell:
THOR Industries (THO)
One-Month Return: +19.8%
Created through the acquisition and merger of various RV manufacturers, THOR Industries manufactures and sells a range of recreational vehicles, including motorhomes and travel trailers, catering to consumers seeking the freedom and comfort of the RV lifestyle.
Why Is THO Risky?
- Sales tumbled by 11.4% annually over the last two years, showing market trends are working against its favor during this cycle
- Falling earnings per share over the last two 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
At $107.45 per share, THOR Industries trades at 22.1x forward P/E. If you’re considering THO for your portfolio, see our FREE research report to learn more.
Two Momentum Stocks to Watch:
Monolithic Power Systems (MPWR)
One-Month Return: +14.4%
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Why Is MPWR a Good Business?
- Annual revenue growth of 17.3% over the last two years was superb and indicates its market share increased during this cycle
- MPWR is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Monolithic Power Systems is trading at $830 per share, or 46.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
VSE Corporation (VSEC)
One-Month Return: +25.6%
With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ:VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.
Why Is VSEC on Our Radar?
- Market share has increased this cycle as its 22.5% annual revenue growth over the last two years was exceptional
- Operating margin expanded by 5.4 percentage points over the last five years as it scaled and became more efficient
- Incremental sales over the last five years boosted profitability as its annual earnings per share growth of 14.2% outstripped its revenue performance
VSE Corporation’s stock price of $165.06 implies a valuation ratio of 41.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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