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.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. On that note, here is one stock with the fundamentals to back up its performance and two best left ignored.

Two Momentum Stocks to Sell:

onsemi (ON)

One-Month Return: +14%

Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.

Why Does ON Give Us Pause?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 14.8% annually over the last two years
2. Anticipated sales growth of 4.9% for the next year implies demand will be shaky
3. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 17.7 percentage points

onsemi’s stock price of $69.69 implies a valuation ratio of 23.7x forward P/E. Dive into our free research report to see why there are better opportunities than ON.

Nature's Sunshine (NATR)

One-Month Return: +10.7%

Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.

Why Are We Wary of NATR?

1. 2.8% annual revenue growth over the last three years was slower than its consumer staples peers
2. Modest revenue base of $474.5 million gives it less fixed cost leverage and fewer distribution channels than larger companies
3. Estimated sales growth of 3.1% for the next 12 months is soft and implies weaker demand

Nature's Sunshine is trading at $27.11 per share, or 29.1x forward P/E. Read our free research report to see why you should think twice about including NATR in your portfolio.

One Momentum Stock to Watch:

Brady (BRC)

One-Month Return: +8.2%

Founded in 1914 and evolving through more than a century of industrial innovation, Brady (NYSE: BRC) manufactures and supplies identification solutions and workplace safety products that help companies identify and protect their premises, products, and people.

Why Does BRC Stand Out?

1. 8.3% annual revenue growth over the last two years surpassed the sector average as its services resonated with customers
2. Share repurchases over the last five years enabled its annual earnings per share growth of 16.5% to outpace its revenue gains
3. Robust free cash flow margin of 10.9% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute

At $91.57 per share, Brady trades at 17x 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

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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.