1 Momentum Stock to Target This Week and 2 We Turn Down

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.

But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here is one stock we think lives up to the hype and two best left ignored.

Two Momentum Stocks to Sell:

SiteOne (SITE)

One-Month Return: +10.6%

Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE:SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.

Why Is SITE Not Exciting?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Earnings per share fell by 4.9% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
3. Eroding returns on capital suggest its historical profit centers are aging

At $145.87 per share, SiteOne trades at 32.9x forward P/E. If you’re considering SITE for your portfolio, see our FREE research report to learn more.

10x Genomics (TXG)

One-Month Return: +8.6%

Founded in 2012 by scientists seeking to overcome limitations in traditional biological research methods, 10x Genomics (NASDAQ:TXG) develops instruments, consumables, and software that enable researchers to analyze biological systems at single-cell resolution and spatial context.

Why Are We Hesitant About TXG?

1. Sales trends were unexciting over the last two years as its 4.2% annual growth was below the typical healthcare company
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Negative returns on capital show management lost money while trying to expand the business

10x Genomics’s stock price of $19.89 implies a valuation ratio of 4.2x forward price-to-sales. To fully understand why you should be careful with TXG, check out our full research report (it’s free).

One Momentum Stock to Buy:

Nicolet Bankshares (NIC)

One-Month Return: +19.7%

Starting as Green Bay Financial Corporation in 2000 before rebranding in 2002, Nicolet Bankshares (NYSE:NIC) is a regional bank holding company that provides commercial, agricultural, and consumer banking services primarily in Wisconsin, Michigan, and Minnesota.

Why Should You Buy NIC?

1. Annual net interest income growth of 18.8% over the past five years was outstanding, reflecting market share gains this cycle
2. Market share is on track to rise over the next 12 months as its 60.4% projected net interest income growth implies demand will accelerate from its five-year trend
3. Net interest margin expanded by 65 basis points (100 basis points = 1 percentage point) over the last two years, providing additional flexibility for investments

Nicolet Bankshares is trading at $148.53 per share, or 1.7x forward P/B. Is now the right time to buy? Find out in our full 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.