1 Surging Stock Worth Investigating and 2 We Brush Off

The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here is one stock with lasting competitive advantages and two not so much.

Two Momentum Stocks to Sell:

EchoStar (SATS)

One-Month Return: +11.7%

Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ:SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.

Why Do We Think SATS Will Underperform?

1. Sales tumbled by 6.6% annually over the last two years, showing market trends are working against its favor during this cycle
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. Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes

EchoStar’s stock price of $119.90 implies a valuation ratio of 32.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SATS doesn’t pass our bar.

Mobileye (MBLY)

One-Month Return: +4.7%

With its EyeQ chips installed in over 200 million vehicles worldwide, Mobileye (NASDAQ:MBLY) develops advanced driver assistance systems and autonomous driving technologies that help vehicles detect and respond to road conditions.

Why Should You Dump MBLY?

1. Annual sales declines of 1.7% for the past two years show its products and services struggled to connect with the market during this cycle
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

At $11.59 per share, Mobileye trades at 33.6x forward P/E. To fully understand why you should be careful with MBLY, check out our full research report (it’s free).

One Momentum Stock to Watch:

Halozyme Therapeutics (HALO)

One-Month Return: +14.7%

Known for transforming hours-long intravenous infusions into minutes-long subcutaneous injections, Halozyme Therapeutics (NASDAQ:HALO) develops and licenses its proprietary ENHANZE technology that enables subcutaneous delivery of injectable drugs that would otherwise require intravenous administration.

Why Are We Fans of HALO?

1. Annual revenue growth of 44.2% over the last five years was superb and indicates its market share increased during this cycle
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 104% exceeded its revenue gains over the last five years
3. HALO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Halozyme Therapeutics is trading at $71.38 per share, or 9.2x forward P/E. Is now the right time to buy? See for yourself 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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.