2 Surging Stocks for Long-Term Investors and 1 Facing Headwinds

The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.

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:

Sally Beauty (SBH)

One-Month Return: +9.1%

Catering to both everyday consumers as well as salon professionals, Sally Beauty (NYSE:SBH) is a retailer that sells salon-quality beauty products such as makeup and haircare products.

Why Are We Out on SBH?

1. Lack of new stores suggest it’s attempting to increase revenue at existing locations because demand is sluggish
2. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
3. Subscale operations are evident in its revenue base of $3.73 billion, meaning it has fewer distribution channels than its larger rivals

Sally Beauty is trading at $16.25 per share, or 7.5x forward P/E. Check out our free in-depth research report to learn more about why SBH doesn’t pass our bar.

Two Momentum Stocks to Watch:

Snowflake (SNOW)

One-Month Return: +20.2%

Named after the unique architecture of its data warehouse which resembles a snowflake pattern, Snowflake (NYSE:SNOW) provides a cloud-based data platform that enables organizations to consolidate, analyze, and share data across multiple cloud providers.

Why Should You Buy SNOW?

1. Billings have averaged 31.4% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. Market share will likely rise over the next 12 months as its expected revenue growth of 28.5% is robust
3. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently

At $329.75 per share, Snowflake trades at 17.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

Toast (TOST)

One-Month Return: +11%

Born from the frustrations of three friends waiting too long for their restaurant bill, Toast (NYSE:TOST) provides a cloud-based digital technology platform with software, payment processing, and hardware solutions built specifically for restaurants.

Why Do We Like TOST?

1. ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
2. Projected revenue growth of 19.9% for the next 12 months suggests its momentum from the last two years will persist

Toast’s stock price of $34.25 implies a valuation ratio of 2.5x forward price-to-sales. Is now the time to initiate a position? 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.