1 Mooning Stock to Own for Decades 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. Keeping that in mind, here is one stock with lasting competitive advantages and two that may correct.

Two Momentum Stocks to Sell:

Nextdoor (NXDR)

One-Month Return: +25.3%

Helping residents figure out what's happening on their block in real time, Nextdoor (NYSE:KIND) is a social network that connects neighbors with each other and with local businesses.

Why Does NXDR Worry Us?

1. White space opportunities may be dwindling as its growth in weekly active users averaged a weak 6.5%
2. Persistent EBITDA margin losses suggest the business manages its expenses poorly
3. Negative free cash flow raises questions about the return timeline for its investments

Nextdoor’s stock price of $2.16 implies a valuation ratio of 3.8x forward price-to-gross profit. Read our free research report to see why you should think twice about including NXDR in your portfolio.

Moderna (MRNA)

One-Month Return: +28.4%

Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ:MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.

Why Are We Out on MRNA?

1. Sales tumbled by 50.5% annually over the last two years, showing market trends are working against its favor during this cycle
2. Free cash flow margin dropped by 215.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $31.02 per share, Moderna trades at 7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MRNA.

One Momentum Stock to Buy:

DoorDash (DASH)

One-Month Return: +12.3%

Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE:DASH) operates an on-demand food delivery platform.

Why Should You Buy DASH?

1. Orders have grown by 20% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
2. Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 1,009% outpaced its revenue gains
3. Free cash flow margin grew by 12.6 percentage points over the last few years, giving the company more chips to play with

DoorDash is trading at $230.87 per share, or 29.7x forward EV/EBITDA. Is now the right 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-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.