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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here is one stock with lasting competitive advantages and two best left ignored.
Two Momentum Stocks to Sell:
Akamai Technologies (AKAM)
One-Month Return: +18.2%
With a massive distributed network spanning 4,100+ points of presence in nearly 130 countries, Akamai Technologies (NASDAQ: AKAM) provides a global distributed cloud platform that helps businesses deliver, secure, and optimize their digital experiences online.
Why Is AKAM Risky?
- Annual revenue growth of 5.1% over the last two years was well below our standards for the software sector
- Gross margin of 59.1% is way below its competitors, leaving less money to invest in areas like marketing and R&D
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
Akamai Technologies is trading at $87.79 per share, or 2.9x forward price-to-sales. To fully understand why you should be careful with AKAM, check out our full research report (it’s free for active Edge members).
Pangaea (PANL)
One-Month Return: +36.5%
Established in 1996, Pangaea Logistics (NASDAQ: PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes.
Why Are We Cautious About PANL?
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 19.1%
- Revenue growth over the past two years was nullified by the company’s new share issuances as its earnings per share fell by 42.3% annually
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 0.6% for the last five years
At $6.64 per share, Pangaea trades at 3.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including PANL in your portfolio.
One Momentum Stock to Watch:
EPAM (EPAM)
One-Month Return: +22.6%
Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE: EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products.
Why Could EPAM Be a Winner?
- Projected revenue growth of 7.8% for the next 12 months indicates demand will rise above its two-year trend
- Strong free cash flow margin of 10.5% enables it to reinvest or return capital consistently
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
EPAM’s stock price of $177.79 implies a valuation ratio of 14.5x 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
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 244% over the last five years (as of June 30, 2025).
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 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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