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.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here are two stocks with lasting competitive advantages and one best left ignored.
One Momentum Stock to Sell:
Globe Life (GL)
One-Month Return: +16.5%
With roots dating back to 1900 and a rebranding from Torchmark Corporation in 2019, Globe Life (NYSE:GL) is an insurance holding company that offers life insurance, supplemental health insurance, and annuity products through various distribution channels.
Why Is GL Not Exciting?
- Muted 4.6% annual revenue growth over the last two years shows its demand lagged behind its insurance peers
- 4.4% annual net premiums earned growth over the last two years was slower than its insurance peers
- Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 2.4% annually over the last five years
At $141.23 per share, Globe Life trades at 2x forward P/B. To fully understand why you should be careful with GL, check out our full research report (it’s free).
Two Momentum Stocks to Watch:
Hims & Hers Health (HIMS)
One-Month Return: +6.6%
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 on Our Radar?
- Average customer growth of 43.3% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
- Free cash flow margin expanded by 14.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
Hims & Hers Health’s stock price of $51.60 implies a valuation ratio of 41.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Mr. Cooper Group (COOP)
One-Month Return: +34.8%
Born from the 2018 merger of Nationstar Mortgage and WMIH Corp, Mr. Cooper Group (NASDAQ:COOP) is a non-bank servicer of residential mortgage loans that collects payments, manages escrow funds, and performs loss mitigation activities for 4.6 million customers.
Why Will COOP Outperform?
- Annual revenue growth of 22.9% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Annual tangible book value per share growth of 46.1% over the past two years was outstanding, reflecting strong capital accumulation this cycle
Mr. Cooper Group is trading at $194.57 per share, or 2.2x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% 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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