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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here are two stocks with lasting competitive advantages and one best left ignored.
One Momentum Stock to Sell:
Collegium Pharmaceutical (COLL)
One-Month Return: +37.2%
Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ:COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.
Why Is COLL Not Exciting?
- Modest revenue base of $757.1 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Estimated sales growth of 3.6% for the next 12 months implies demand will slow from its two-year trend
- Diminishing returns on capital suggest its earlier profit pools are drying up
Collegium Pharmaceutical’s stock price of $43.95 implies a valuation ratio of 5.8x forward P/E. Dive into our free research report to see why there are better opportunities than COLL.
Two Momentum Stocks to Watch:
Globus Medical (GMED)
One-Month Return: +50.2%
With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE:GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.
Why Does GMED Stand Out?
- Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
- Earnings per share grew by 21.6% annually over the last five years, massively outpacing its peers
- GMED is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $86.36 per share, Globus Medical trades at 22.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
NerdWallet (NRDS)
One-Month Return: +35%
Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet (NASDAQ:NRDS) is a digital platform that provides financial guidance to help consumers and small businesses make smarter decisions about credit cards, loans, insurance, and other financial products.
Why Could NRDS Be a Winner?
- Annual revenue growth of 26.5% over the past five years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 266% annual growth in its earnings per share outpaced its revenue
NerdWallet is trading at $14.19 per share, or 10.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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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