1 Mooning Stock to Own for Decades and 2 That Underwhelm
Great things are happening to the stocks in this article. They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
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 with lasting competitive advantages and two best left ignored.
Two Momentum Stocks to Sell:
Acushnet (GOLF)
One-Month Return: +20.3%
Producer of the acclaimed Titleist Pro V1 golf ball, Acushnet (NYSE:GOLF) is a design and manufacturing company specializing in performance-driven golf products.
Why Are We Out on GOLF?
- 7.9% annual revenue growth over the last five years was slower than its consumer discretionary peers
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $113.75 per share, Acushnet trades at 27.6x forward P/E. To fully understand why you should be careful with GOLF, check out our full research report (it’s free).
Brookdale (BKD)
One-Month Return: +8.5%
With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE:BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.
Why Are We Hesitant About BKD?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Sales are projected to tank by 4.3% over the next 12 months as demand evaporates
- High net-debt-to-EBITDA ratio of 11× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Brookdale is trading at $14.21 per share, or 16.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BKD doesn’t pass our bar.
One Momentum Stock to Buy:
Arthur J. Gallagher (AJG)
One-Month Return: +15%
Founded in 1927 and operating in approximately 130 countries through direct operations and correspondent networks, Arthur J. Gallagher (NYSE:AJG) provides insurance brokerage, reinsurance, consulting, and third-party claims settlement services to businesses and individuals worldwide.
Why Do We Love AJG?
- Annual revenue growth of 19.1% over the last two years was superb and indicates its market share increased during this cycle
- Unparalleled revenue scale of $14.95 billion gives it an edge in distribution
- AJG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Arthur J. Gallagher’s stock price of $253.25 implies a valuation ratio of 18.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.