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. On that note, here are two stocks we think live up to the hype and one best left ignored.

One Momentum Stock to Sell:

Orion (ORN)

One-Month Return: +22.4%

Established in 1994, Orion (NYSE: ORN) provides construction services for marine infrastructure and industrial projects.

Why Do We Pass on ORN?

1. Backlog has dropped by 1.7% on average over the past two years, suggesting it’s losing orders as competition picks up
2. Issuance of new shares over the last five years caused its earnings per share to fall by 3.8% annually while its revenue grew
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

At $12.23 per share, Orion trades at 48.1x forward P/E. Dive into our free research report to see why there are better opportunities than ORN.

Two Momentum Stocks to Buy:

Nextpower (NXT)

One-Month Return: +26%

With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextpower (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.

Why Is NXT a Good Business?

1. Backlog has averaged 42.3% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
2. Free cash flow margin expanded by 22.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
3. Improving returns on capital reflect management’s ability to monetize investments

Nextpower’s stock price of $116.88 implies a valuation ratio of 27.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Pathward Financial (CASH)

One-Month Return: +25.8%

Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ: CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options.

Why Are We Backing CASH?

1. Annual net interest income growth of 13.7% over the last five years beat the sector average and underscores the value of its loans
2. Differentiated product suite leads to a Strong performance of its loan book results in a High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 7.1%
3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 25% exceeded its revenue gains over the last five years

Pathward Financial is trading at $90.40 per share, or 2.1x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.