1 Momentum Stock with Competitive Advantages and 2 We Find Risky

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.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here is one stock with the fundamentals to back up its performance and two that may correct.

Two Momentum Stocks to Sell:

Corcept (CORT)

One-Month Return: +20.7%

Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ:CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.

Why Does CORT Give Us Pause?

1. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 16.9 percentage points
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 2.8% annually
3. Waning returns on capital imply its previous profit engines are losing steam

At $83.99 per share, Corcept trades at 47.6x forward P/E. Dive into our free research report to see why there are better opportunities than CORT.

Brighthouse Financial (BHF)

One-Month Return: +17.3%

Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial (NASDAQ:BHF) provides annuity contracts and life insurance products designed to help individuals protect wealth, generate income, and transfer assets.

Why Are We Cautious About BHF?

1. Insurance offerings face significant market challenges this cycle as net premiums earned contracted by 1.9% annually over the last five years
2. Book value per share tumbled by 15.1% annually over the last five years, showing insurance sector trends are working against its favor during this cycle
3. Debt-to-equity ratio of 1.3× is concerningly high, indicating excessive leverage that could limit financial flexibility

Brighthouse Financial’s stock price of $55 implies a valuation ratio of 0.8x forward P/B. To fully understand why you should be careful with BHF, check out our full research report (it’s free).

One Momentum Stock to Watch:

Hims & Hers Health (HIMS)

One-Month Return: +20.2%

Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.

Why Do We Watch HIMS?

1. Customer growth averaged 43.3% over the past two years, showing its ability to "land" new contracts and potentially "expand" them later - a powerful one-two punch for sales
2. Free cash flow margin jumped by 14.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
3. Historical investments are beginning to pay off as its returns on capital are growing

Hims & Hers Health is trading at $54.50 per share, or 44.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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-small-cap company Exlservice (+354% 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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