1 Momentum Stock for Long-Term Investors and 2 Facing Headwinds

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. All that said, here is one stock we think lives up to the hype and two not so much.

Two Momentum Stocks to Sell:

eHealth (EHTH)

One-Month Return: +20.4%

Aiming to address a high-stakes and often confusing decision, eHealth (NASDAQ:EHTH) guides consumers through health insurance enrollment and related topics.

Why Are We Cautious About EHTH?

1. Struggled with new customer acquisition as its estimated membership averaged 2.2% declines
2. Sales are projected to tank by 2.5% over the next 12 months as demand evaporates
3. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

At $4.54 per share, eHealth trades at 3.6x forward EV/EBITDA. To fully understand why you should be careful with EHTH, check out our full research report (it’s free for active Edge members).

Cogent (CCOI)

One-Month Return: +19.4%

Operating a massive network spanning 20,000 miles of fiber optic cable and connecting to over 3,200 buildings worldwide, Cogent Communications (NASDAQ:CCOI) provides high-speed Internet access, private network services, and data center colocation to businesses and bandwidth-intensive organizations across 54 countries.

Why Does CCOI Give Us Pause?

1. Free cash flow margin shrank by 39.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
2. Waning returns on capital imply its previous profit engines are losing steam
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Cogent is trading at $42.17 per share, or 6.1x forward EV-to-EBITDA. If you’re considering CCOI for your portfolio, see our FREE research report to learn more.

One Momentum Stock to Watch:

Micron (MU)

One-Month Return: +32.1%

Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE:MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.

Why Do We Like MU?

1. Market share has increased this cycle as its 55.1% annual revenue growth over the last two years was exceptional
2. Notable projected revenue growth of 44.2% for the next 12 months hints at market share gains
3. Earnings per share grew by 24% annually over the last five years and easily exceeded the peer group average

Micron’s stock price of $184.94 implies a valuation ratio of 11.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.

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 9 Market-Beating Stocks. 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.