2 Momentum Stocks on Our Watchlist 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.

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 two stocks we think live up to the hype and one not so much.

One Momentum Stock to Sell:

Amtech (ASYS)

One-Month Return: +48.6%

Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ:ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors.

Why Are We Wary of ASYS?

1. Sales tumbled by 16.3% annually over the last two years, showing market trends are working against its favor during this cycle
2. Low free cash flow margin of 6.6% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. Negative returns on capital show that some of its growth strategies have backfired, and its shrinking returns suggest its past profit sources are losing steam

Amtech is trading at $13.10 per share, or 34.4x forward P/E. To fully understand why you should be careful with ASYS, check out our full research report (it’s free).

Two Momentum Stocks to Watch:

Molina Healthcare (MOH)

One-Month Return: +19.2%

Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.

Why Do We Like MOH?

1. Annual revenue growth of 19.3% over the past five years was outstanding, reflecting market share gains this cycle
2. Sizeable revenue base of $44.55 billion gives it economies of scale and favorable reimbursement terms with healthcare providers
3. Earnings per share have grown by 5.8% annually over the last five years, slightly higher than the industry average

Molina Healthcare’s stock price of $186.94 implies a valuation ratio of 15x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

ATI (ATI)

One-Month Return: +21.1%

With its materials flying in nearly every commercial and military aircraft in service today, ATI (NYSE:ATI) produces highly specialized materials and components for aerospace, defense, medical, and energy applications using advanced metallurgy and manufacturing processes.

Why Are We Positive On ATI?

1. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 19.8% exceeded its revenue gains over the last two years
2. Free cash flow margin increased by 19.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
3. Rising returns on capital show the company is starting to reap the benefits of its past investments

At $120.36 per share, ATI trades at 33.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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 9 Market-Beating Stocks. 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.