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. All that said, here is one stock with the fundamentals to back up its performance and two not so much.

Two Momentum Stocks to Sell:

Analog Devices (ADI)

One-Month Return: +25.7%

Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.

Why Does ADI Give Us Pause?

Products and services are facing significant end-market challenges during this cycle as sales have declined by 13.8% annually over the last two years Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 8.1 percentage points Underwhelming 6.2% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging

Analog Devices is trading at $225.70 per share, or 29.8x forward P/E. To fully understand why you should be careful with ADI, check out our full research report (it’s free).

Hudson Technologies (HDSN)

One-Month Return: +34.8%

Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.

Why Are We Cautious About HDSN?

Annual sales declines of 15.5% for the past two years show its products and services struggled to connect with the market during this cycle Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Hudson Technologies’s stock price of $7.59 implies a valuation ratio of 9.9x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why HDSN doesn’t pass our bar.

One Momentum Stock to Watch:

HubSpot (HUBS)

One-Month Return: +22.4%

Started in 2006 by two MIT grad students, HubSpot (NYSE:HUBS) is a software-as-a-service platform that helps small and medium-sized businesses market themselves, sell, and get found on the internet.

Why Do We Like HUBS?

Average billings growth of 19.7% over the last year enhances its liquidity and shows there is steady demand for its products Software is difficult to replicate at scale and results in a top-tier gross margin of 84.8% Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient

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At $670 per share, HubSpot trades at 11.1x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our 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 176% over the last five years.

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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.

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