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. All that said, here is one stock with the fundamentals to back up its performance and two that may correct.

One-Month Return: +21%

Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ:SSYS) offers 3D printers and related materials, software, and services to many industries.

Why Is SSYS Risky?

Annual sales declines of 5.6% for the past two years show its products and services struggled to connect with the market during this cycle

Historical operating margin losses point to an inefficient cost structure

Free cash flow margin shrank by 6.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $11.20 per share, Stratasys trades at 55.9x forward P/E. Read our free research report to see why you should think twice about including SSYS in your portfolio, it’s free.

One-Month Return: +16%

Originally founded in 1985 in Arizona as Monterey Homes, Meritage Homes (NYSE:MTH) is a homebuilder specializing in designing and constructing energy-efficient and single-family homes in the US.

Why Do We Think MTH Will Underperform?

Demand cratered as it couldn’t win new orders over the past two years, leading to an average 34.4% decline in its backlog

Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable

Waning returns on capital imply its previous profit engines are losing steam

Meritage Homes’s stock price of $76.04 implies a valuation ratio of 11.2x forward P/E. If you’re considering MTH for your portfolio, see our FREE research report to learn more.

One-Month Return: +29%

Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE:AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.

Why Could AGL Be a Winner?

Annual revenue growth of 37.2% over the past five years was outstanding, reflecting market share gains this cycle

Customer trends over the past two years show it’s maintaining a steady flow of new contracts that can potentially increase in value over time

Cash burn has decreased over the last five years, showing the company is becoming a more self-sustaining business

agilon health is trading at $0.93 per share, or 0.1x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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.