2 Momentum Stocks with Solid Fundamentals and 1 We Turn Down

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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here are two stocks we think live up to the hype and one best left ignored.

One Momentum Stock to Sell:

Tandem Diabetes (TNDM)

One-Month Return: +26.4%

With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ:TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels.

Why Are We Out on TNDM?

1. Disappointing pump shipments over the past two years imply it may need to invest in improvements to get back on track
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. Negative EBITDA restricts its access to capital and increases the probability of shareholder dilution if things turn unexpectedly

Tandem Diabetes is trading at $19.46 per share, or 25.1x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including TNDM in your portfolio.

Two Momentum Stocks to Watch:

Vicor (VICR)

One-Month Return: +27%

Founded by a researcher at the Massachusetts Institute of Technology, Vicor (NASDAQ:VICR) provides electrical power conversion and delivery products for a range of industries.

Why Is VICR on Our Radar?

1. Solid 9.9% annual revenue growth over the last five years indicates its offering’s solve complex business issues
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 26.1% over the last two years outstripped its revenue performance
3. Free cash flow margin expanded by 21.8 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

At $83.58 per share, Vicor trades at 40.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Cardinal Health (CAH)

One-Month Return: +30.9%

Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE:CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.

Why Do We Like CAH?

1. Dominant market position is represented by its $234.3 billion in revenue, which creates significant barriers to entry in this highly regulated industry
2. Projected revenue growth of 12.1% for the next 12 months indicates demand will rise above its two-year trend
3. Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 9.4% annually

Cardinal Health’s stock price of $207.78 implies a valuation ratio of 20.8x forward P/E. 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

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 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 Kadant (+351% 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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