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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. On that note, here is one stock we think lives up to the hype and two best left ignored.
Two Momentum Stocks to Sell:
Tilly's (TLYS)
One-Month Return: +20.5%
With an emphasis on skate and surf culture, Tilly’s (NYSE: TLYS) is a specialty retailer that sells clothing, footwear, and accessories geared towards fashion-forward teens and young adults.
Why Do We Steer Clear of TLYS?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Earnings per share decreased by more than its revenue over the last six years, showing each sale was less profitable
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Tilly's is trading at $2 per share, or 0.1x trailing 12-month price-to-sales. If you’re considering TLYS for your portfolio, see our FREE research report to learn more.
Sally Beauty (SBH)
One-Month Return: +21.2%
Catering to both everyday consumers as well as salon professionals, Sally Beauty (NYSE: SBH) is a retailer that sells salon-quality beauty products such as makeup and haircare products.
Why Should You Dump SBH?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Subscale operations are evident in its revenue base of $3.69 billion, meaning it has fewer distribution channels than its larger rivals
- Falling earnings per share over the last six years has some investors worried as stock prices ultimately follow EPS over the long term
Sally Beauty’s stock price of $14.13 implies a valuation ratio of 7.5x forward P/E. Read our free research report to see why you should think twice about including SBH in your portfolio.
One Momentum Stock to Watch:
Astrana Health (ASTH)
One-Month Return: +38.1%
Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.
Why Does ASTH Stand Out?
- Market share has increased this cycle as its 36.6% annual revenue growth over the last two years was exceptional
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 59.1%
- Earnings per share grew by 19.6% annually over the last five years, massively outpacing its peers
At $30.82 per share, Astrana Health trades at 13.2x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 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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