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 are two stocks with the fundamentals to back up their performance and one that may correct.

One Momentum Stock to Sell:

Leggett & Platt (LEG)

One-Month Return: +10.6%

Founded in 1883, Leggett & Platt (NYSE: LEG) is a diversified manufacturer of products and components for various industries.

Why Do We Steer Clear of LEG?

1. Sales stagnated over the last five years and signal the need for new growth strategies
2. Sales over the last five years were less profitable as its earnings per share fell by 11.8% annually while its revenue was flat
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Leggett & Platt’s stock price of $9.92 implies a valuation ratio of 8.5x forward P/E. If you’re considering LEG for your portfolio, see our FREE research report to learn more.

Two Momentum Stocks to Watch:

Confluent (CFLT)

One-Month Return: +17.5%

Built by the original creators of Apache Kafka, the popular open-source messaging system, Confluent (NASDAQ: CFLT) provides a data infrastructure platform that enables organizations to connect their applications, systems, and data layers around real-time data streams.

Why Does CFLT Stand Out?

1. Billings growth has averaged 32.6% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable three-year growth trajectory
3. Free cash flow margin is on track to jump by 5.6 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends

Confluent is trading at $19.45 per share, or 5.4x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

The Bancorp (TBBK)

One-Month Return: +13.1%

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ: TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

Why Is TBBK a Top Pick?

1. Market share has increased this cycle as its 15.2% annual net interest income growth over the last five years was exceptional
2. Differentiated product suite results in a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds lead to a best-in-class net interest margin of 4.7%
3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 24.1% exceeded its revenue gains over the last two years

At $76 per share, The Bancorp trades at 3.9x forward P/B. 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

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 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% 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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