Great things are happening to the stocks in this article. They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here is one stock we think lives up to the hype and two not so much.

Two Momentum Stocks to Sell:

Semtech (SMTC)

One-Month Return: +15.6%

A public company since the late 1960s, Semtech (NASDAQ: SMTC) is a provider of analog and mixed-signal semiconductors used for Internet of Things systems and cloud connectivity.

Why Should You Dump SMTC?

1. Mounting operating losses demonstrate the tradeoff between growth and profitability
2. Investment activity picked up over the last five years, pressuring its weak free cash flow margin of 6.5%
3. Negative returns on capital show that some of its growth strategies have backfired, and its decreasing returns suggest its historical profit centers are aging

Semtech’s stock price of $60.91 implies a valuation ratio of 33.5x forward P/E. Read our free research report to see why you should think twice about including SMTC in your portfolio.

Wabash (WNC)

One-Month Return: +10.9%

With its first trailer reportedly built on two sawhorses, Wabash (NYSE: WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.

Why Do We Steer Clear of WNC?

1. Demand cratered as it couldn’t win new orders over the past two years, leading to an average 36.2% decline in its backlog
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Wabash is trading at $11.74 per share, or 15.4x forward P/E. Dive into our free research report to see why there are better opportunities than WNC.

One Momentum Stock to Watch:

Impinj (PI)

One-Month Return: +12.6%

Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ: PI) is a maker of radio-frequency identification (RFID) hardware and software.

Why Should PI Be on Your Watchlist?

1. Impressive 18.2% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 336% outpaced its revenue gains
3. Free cash flow margin grew by 23.2 percentage points over the last five years, giving the company more chips to play with

At $182.92 per share, Impinj trades at 94x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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