1 Surging Stock Worth Your Attention and 2 We Find Risky

Barchart·06/22/2026 04:00:25

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. Keeping that in mind, here is one stock with lasting competitive advantages and two that may correct.

Two Momentum Stocks to Sell:

Teradyne (TER)

One-Month Return: +22.9%

Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.

Why Is TER Not Exciting?

1. Muted 3.4% annual revenue growth over the last five years shows its demand lagged behind its semiconductor peers
2. Estimated sales growth of 17.3% for the next 12 months implies demand will slow from its two-year trend
3. 10.7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $440.50 per share, Teradyne trades at 64.3x forward P/E. To fully understand why you should be careful with TER, check out our full research report (it’s free).

Fortune Brands (FBIN)

One-Month Return: +12.4%

Targeting a wide customer base of residential and commercial customers, Fortune Brands (NYSE:FBIN) makes plumbing, security, and outdoor living products.

Why Is FBIN Risky?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Sales are projected to tank by 1.2% over the next 12 months as its demand continues evaporating
3. Earnings per share have dipped by 6% annually over the past five years, which is concerning because stock prices follow EPS over the long term

Fortune Brands is trading at $42.31 per share, or 12.9x forward P/E. Read our free research report to see why you should think twice about including FBIN in your portfolio.

One Momentum Stock to Buy:

Hims & Hers Health (HIMS)

One-Month Return: +48.4%

Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.

Why Is HIMS a Good Business?

1. Business is winning new contracts that can potentially increase in value as its customer base averaged 26.1% growth over the past two years
2. Free cash flow margin jumped by 16.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
3. Improving returns on capital suggest its past investments are beginning to deliver value

Hims & Hers Health’s stock price of $35.25 implies a valuation ratio of 2.7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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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