Nasdaq
华尔街日报1 Surging Stock to Research Further and 2 We Ignore
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 we think lives up to the hype and two not so much.
Two Momentum Stocks to Sell:
Dine Brands (DIN)
One-Month Return: +12.9%
Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.
Why Do We Avoid DIN?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Efficiency has decreased over the last year as its operating margin fell by 6.7 percentage points
- High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $34.03 per share, Dine Brands trades at 7x forward P/E. Check out our free in-depth research report to learn more about why DIN doesn’t pass our bar.
Rogers (ROG)
One-Month Return: +11.5%
With roots dating back to 1832, making it one of America's oldest continuously operating companies, Rogers (NYSE:ROG) designs and manufactures specialized engineered materials and components used in electric vehicles, telecommunications, renewable energy, and other high-performance applications.
Why Do We Think ROG Will Underperform?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 7% annually over the last two years
- Sales over the last five years were less profitable as its earnings per share fell by 15.7% annually while its revenue was flat
- Free cash flow margin shrank by 5.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Rogers is trading at $94.23 per share, or 30.3x forward P/E. If you’re considering ROG for your portfolio, see our FREE research report to learn more.
One Momentum Stock to Watch:
Concentrix (CNXC)
One-Month Return: +14.9%
With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ:CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.
Why Could CNXC Be a Winner?
- Annual revenue growth of 22.1% over the last two years was superb and indicates its market share increased during this cycle
- Revenue base of $9.72 billion gives it economies of scale and some distribution advantages
- Able to self-fund growth initiatives without relying on external capital thanks to its 5.6% free cash flow margin
Concentrix’s stock price of $41.97 implies a valuation ratio of 3.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.