2 Momentum Stocks for Long-Term Investors and 1 We Ignore

The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. On that note, here are two stocks with the fundamentals to back up their performance and one best left ignored.

One Stock to Sell:

Pediatrix Medical Group (MD)

One-Month Return: +9.9%

With a network of approximately 2,620 affiliated physicians caring for some of the most vulnerable patients, Pediatrix Medical Group (NYSE:MD) provides specialized physician services focused on neonatal, maternal-fetal, pediatric cardiology and other pediatric subspecialty care across 37 states.

Why Do We Pass on MD?

1. Poor comparable store sales performance over the past two years indicates it’s having trouble bringing new patients into its facilities
2. Projected sales decline of 1.5% over the next 12 months indicates demand will continue deteriorating
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Pediatrix Medical Group is trading at $17.83 per share, or 9.9x forward P/E. If you’re considering MD for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

RBC Bearings (RBC)

One-Month Return: +8.2%

With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE:RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.

Why Should RBC Be on Your Watchlist?

1. Annual revenue growth of 18.9% over the past five years was outstanding, reflecting market share gains this cycle
2. Projected revenue growth of 14.5% for the next 12 months is above its two-year trend, pointing to accelerating demand
3. Healthy operating margin of 20.2% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage

At $416 per share, RBC Bearings trades at 34.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

HCI Group (HCI)

One-Month Return: +12.9%

Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE:HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.

Why Is HCI a Good Business?

1. Net premiums earned expanded by 26.7% annually over the last two years, demonstrating exceptional market penetration this cycle
2. Annual book value per share growth of 63.4% over the last two years was superb and indicates its capital strength increased during this cycle
3. Book value per share outlook for the upcoming 12 months is outstanding and shows it’s on track to build significant equity value

HCI Group’s stock price of $210.99 implies a valuation ratio of 3.1x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

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 Comfort Systems (+782% 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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