1 Surging Stock to Own for Decades and 2 We Brush Off
Adam Hejl
Sun, August 16, 2026 at 9:03 AM GMT+5:30
3 min read
- KSS
-2.09% - TDW
+3.02% - CORT
+3.58%
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
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. On that note, here is one stock we think lives up to the hype and two best left ignored
Two Momentum Stocks to Sell:
Kohl’s (KSS)
Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE:KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods
Why Do We Avoid KSS?
Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
Poor expense management has led to an operating margin of 3.4% that is below the industry average
5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $19.22 per share, Kohl’s trades at 13.2x forward P/E. Read our free research report to see why you should think twice about including KSS in your portfolio, it’s free
Corcept (CORT)
One-Month Return: +32.5%
Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ:CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases
Why Does CORT Give Us Pause?
Earnings per share fell by 16.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
25.7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Diminishing returns on capital suggest its earlier profit pools are drying up
Corcept’s stock price of $113.83 implies a valuation ratio of 25.1x forward P/E. Check out our free in-depth research report to learn more about why CORT doesn’t pass our bar
One Momentum Stock to Buy:
Tidewater (TDW)
One-Month Return: +23.2%
Operating one of the world’s largest fleets with over 200 vessels spanning 30 countries, Tidewater (NYSE:TDW) operates offshore service vessels that transport supplies, equipment, and workers to oil rigs and platforms
Why Are We Bullish on TDW?
Impressive 30.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
Strong free cash flow margin of 14.7% enables it to reinvest or return capital consistently
