2 Momentum Stocks Worth Your Attention and 1 We Ignore

Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.

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 are two stocks with the fundamentals to back up their performance and one best left ignored.

One Stock to Sell:

Scholastic (SCHL)

One-Month Return: -0.9%

Creator of the legendary Scholastic Book Fair, Scholastic (NASDAQ:SCHL) is an international company specializing in children's publishing, education, and media services.

Why Should You Dump SCHL?

1. 4.9% annual revenue growth over the last five years was slower than its consumer discretionary peers
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $34.08 per share, Scholastic trades at 23.7x forward P/E. Read our free research report to see why you should think twice about including SCHL in your portfolio.

Two Stocks to Buy:

Monolithic Power Systems (MPWR)

One-Month Return: +13.5%

Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.

Why Will MPWR Beat the Market?

1. Annual revenue growth of 27% over the past five years was outstanding, reflecting market share gains this cycle
2. Free cash flow margin expanded by 8 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

Monolithic Power Systems is trading at $1,172 per share, or 53.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

McKesson (MCK)

One-Month Return: +11.2%

With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.

Why Should You Buy MCK?

1. 14.9% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
2. Unparalleled scale of $398 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
3. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

McKesson’s stock price of $934.51 implies a valuation ratio of 21.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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.