1 Momentum Stock with Competitive Advantages and 2 We Find Risky

Barchart·04/09/2026 02:38:15

The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.

But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here is one stock with the fundamentals to back up its performance and two not so much.

Two Stocks to Sell:

Verizon (VZ)

One-Month Return: -4.8%

Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE:VZ) is a telecom giant providing a range of communications and internet services.

Why Do We Steer Clear of VZ?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 1.5% for the last five years
2. Free cash flow margin is not anticipated to grow over the next year
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Verizon is trading at $48.05 per share, or 9.9x forward P/E. Check out our free in-depth research report to learn more about why VZ doesn’t pass our bar.

Tenaris (TEN)

One-Month Return: +6.2%

Operating industrial facilities across the Americas, Europe, Middle East, and Asia, Tenaris (NYSE:TEN) manufactures seamless and welded steel pipes used in oil and gas drilling and transportation.

Why Does TEN Worry Us?

1. Sales trends were unexciting over the last five years as its 4.4% annual growth was below the typical energy upstream and integrated energy company
2. Smaller revenue base of $798.7 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy

Tenaris’s stock price of $39.41 implies a valuation ratio of 5x forward P/E. Dive into our free research report to see why there are better opportunities than TEN.

One Stock to Watch:

FirstCash (FCFS)

One-Month Return: +1.2%

Offering a financial lifeline to the unbanked and credit-constrained since 1988, FirstCash (NASDAQ:FCFS) operates pawn stores across the U.S. and Latin America while also providing retail point-of-sale payment solutions for credit-constrained consumers.

Why Should FCFS Be on Your Watchlist?

1. Annual revenue growth of 17.5% over the past five years was outstanding, reflecting market share gains this cycle
2. Additional sales over the last five years increased its profitability as the 23.8% annual growth in its earnings per share outpaced its revenue
3. ROE of 12.6% shows management can invest its resources competently

At $198.54 per share, FirstCash trades at 18.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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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.

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