2 Momentum Stocks for Long-Term Investors and 1 We Brush Off

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.

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 with the fundamentals to back up their performance and one not so much.

One Stock to Sell:

KeyCorp (KEY)

One-Month Return: +7.4%

Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE:KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.

Why Does KEY Fall Short?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Annual net interest income growth of 2.5% over the last five years was below our standards for the banking sector
3. Net interest margin of 2.4% is well below other banks, signaling its loans aren’t very profitable

At $19.46 per share, KeyCorp trades at 1.2x forward P/B. Check out our free in-depth research report to learn more about why KEY doesn’t pass our bar.

Two Stocks to Watch:

OSI Systems (OSIS)

One-Month Return: -6.8%

With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems (NASDAQ:OSIS) designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications.

Why Are We Backing OSIS?

1. Impressive 16.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 23.4% over the last two years outstripped its revenue performance
3. Free cash flow margin grew by 2.4 percentage points over the last five years, giving the company more chips to play with

OSI Systems’s stock price of $266.04 implies a valuation ratio of 25.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Amgen (AMGN)

One-Month Return: +1.9%

Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ:AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.

Why Are We Positive On AMGN?

1. Annual revenue growth of 15.8% over the last two years beat the sector average and underscores the unique value of its offerings
2. Economies of scale give it more fixed cost leverage than its smaller competitors
3. Robust free cash flow margin of 29.9% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy

Amgen is trading at $329.93 per share, or 16.2x 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.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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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