1 Surging Industrials Stock to Own for Decades and 2 We Find Risky

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 is one stock with lasting competitive advantages and two that may correct.

Two Momentum Stocks to Sell:

Transcat (TRNS)

One-Month Return: +27.8%

Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ:TRNS) provides measurement instruments and supplies.

Why Do We Think Twice About TRNS?

1. Issuance of new shares over the last two years caused its earnings per share to fall by 11.1% annually while its revenue grew
2. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Transcat’s stock price of $90.21 implies a valuation ratio of 51.5x forward P/E. Read our free research report to see why you should think twice about including TRNS in your portfolio.

ArcBest (ARCB)

One-Month Return: +22.8%

Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ:ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight.

Why Are We Out on ARCB?

1. Underwhelming unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Earnings per share fell by 2% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Diminishing returns on capital suggest its earlier profit pools are drying up

ArcBest is trading at $142.12 per share, or 24.8x forward P/E. Dive into our free research report to see why there are better opportunities than ARCB.

One Momentum Stock to Buy:

Axon (AXON)

One-Month Return: +21.5%

Providing body cameras and tasers for first responders, AXON (NASDAQ:AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.

Why Is AXON a Good Business?

1. ARR trends over the past two years show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
2. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
3. Earnings per share have massively outperformed its peers over the last two years, increasing by 26.6% annually

At $478.24 per share, Axon trades at 58.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

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.