2 Surging Stocks on Our Watchlist and 1 That Underwhelm

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 are two stocks with the fundamentals to back up their performance and one that may correct.

One Momentum Stock to Sell:

Commercial Vehicle Group (CVGI)

One-Month Return: +20.9%

Formed from a partnership between two distinct companies, CVG (NASDAQ:CVGI) offers various components used in vehicles and systems used in warehouses.

Why Is CVGI Risky?

1. Sales tumbled by 2% annually over the last five years, showing market trends are working against its favor during this cycle
2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Commercial Vehicle Group is trading at $4.25 per share, or 10.1x forward EV-to-EBITDA. To fully understand why you should be careful with CVGI, check out our full research report (it’s free).

Two Momentum Stocks to Watch:

Urban Outfitters (URBN)

One-Month Return: +18.8%

Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ:URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.

Why Does URBN Stand Out?

1. New store openings and solid same-store sales performance have boosted its top-line growth
2. Locations open for at least a year are seeing increased demand as same-store sales have averaged 4.6% growth over the past two years
3. Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

At $72.74 per share, Urban Outfitters trades at 12.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Installed Building Products (IBP)

One-Month Return: +15.3%

Founded in 1977, Installed Building Products (NYSE:IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction.

Why Could IBP Be a Winner?

1. Market share has increased this cycle as its 12.4% annual revenue growth over the last five years was exceptional
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 21.4% exceeded its revenue gains over the last five years
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its rising returns show it’s making even more lucrative bets

Installed Building Products’s stock price of $302.57 implies a valuation ratio of 27.8x forward P/E. 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

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.