Exciting developments are taking place for the stocks in this article. They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here is one stock we think lives up to the hype and two best left ignored.

Two Momentum Stocks to Sell:

Enpro (NPO)

One-Month Return: +16.7%

Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE: NPO) designs, manufactures, and sells products used for machinery in various industries.

Why Are We Wary of NPO?

1. Sales trends were unexciting over the last five years as its 1.3% annual growth was below the typical industrials company
2. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Enpro is trading at $274.49 per share, or 31.1x forward P/E. Read our free research report to see why you should think twice about including NPO in your portfolio.

Methode Electronics (MEI)

One-Month Return: +20%

Founded in 1946, Methode Electronics (NYSE: MEI) is a global supplier of custom-engineered solutions for Original Equipment Manufacturers (OEMs).

Why Are We Out on MEI?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
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. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate

At $8.85 per share, Methode Electronics trades at 142.7x forward P/E. To fully understand why you should be careful with MEI, check out our full research report (it’s free).

One Momentum Stock to Watch:

Seagate (STX)

One-Month Return: +18.4%

One of two remaining major hard drive manufacturers after decades of industry consolidation, Seagate (NASDAQ: STX) manufactures hard disk drives and solid state drives that store data in data centers, cloud systems, and consumer devices.

Why Does STX Stand Out?

1. Annual revenue growth of 24.7% over the last two years was superb and indicates its market share increased during this cycle
2. Sales outlook for the upcoming 12 months calls for 28.2% growth, an acceleration from its two-year trend
3. Efficiency rose over the last five years as its Operating margin increased by 8 percentage points

Seagate’s stock price of $409.75 implies a valuation ratio of 24.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our 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 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.