3 Momentum Stocks with Solid Fundamentals

The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here are three stocks with the fundamentals to back up their performance.

Vita Coco (COCO)

One-Month Return: +0.3%

Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst.

Why Should COCO Be on Your Watchlist?

1. Products are flying off the shelves as its unit sales averaged 10.8% growth over the past two years
2. Earnings per share grew by 89.3% annually over the last three years and trumped its peers
3. ROIC punches in at 43.3%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets

Vita Coco’s stock price of $54.29 implies a valuation ratio of 37.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Federated Hermes (FHI)

One-Month Return: +4.3%

With roots dating back to 1955 and a pioneering role in money market funds, Federated Hermes (NYSE:FHI) is an investment management firm that offers a wide range of funds and strategies for institutional and individual investors.

Why Are We Fans of FHI?

1. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
2. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $52.95 per share, Federated Hermes trades at 10.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Goldman Sachs (GS)

One-Month Return: +6.6%

Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE:GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.

Why Are We Positive On GS?

1. Offerings and unique value proposition resonate with customers, as seen in its above-market 13.5% annual sales growth over the last two years
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 52.8% exceeded its revenue gains over the last two years
3. Management team has demonstrated it can invest in profitable ventures through its 12.9% five-year return on equity

Goldman Sachs is trading at $934.38 per share, or 17.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.