Karee Venema
Depending on what you've been buying, 2025 has been either a great year or one full of heartburn. The broad-based S&P 500 Index is down 0.6% year to date but 4.9% from a February 19 52-week high reached in the aftermath of November's election.
Meanwhile, mega-cap tech stocks such as Apple (AAPL), Amazon.com (AMZN) and Google parent Alphabet (GOOGL) are all in the red since January 1 despite being go-to leaders over the last few years.
As the old saying goes, however, past performance is no indicator of future returns.
We could very well see old Silicon Valley favorites rise again – or, on the other hand, we could see the market stumble across the board as other companies start to underperform, too.
But for trend-following investors who believe current momentum sets the tone for what's next, it's worth watching the following five momentum standouts that have skyrocketed in 2025 and stand apart from the rest of Wall Street.
Each has a unique business model driving its success as well as unique risks to continued growth.
All are momentum stocks that are valued at more than $800 million to prove a measure of stability. And all have more than doubled since where they were trading in December, though some have surrendered some gains amid this year's volatility, including a significant stock market sell-off.
Here are five momentum stocks that have posted impressive gains in a tough year and are well-positioned for more upside from here.
Data is as of May 21.
Grail
- Market value: $1.3 billion
- Sector: Health care
- YTD return: 120.3%
Grail (GRAL, $37.45) is a cutting-edge medical firm working on the next generation of cancer diagnostics tools that will allow doctors to identify at-risk patients early on and in minimally invasive ways.
This could be a game-changer on multiple levels: improving outcomes, keeping the total cost of care in check and, ultimately, fighting back against deadly cancers around the world.
Grail's goals are praiseworthy, but its corporate history is not without its challenges, including a little bit of geopolitical controversy.
The company was founded within parent firm Illumina (ILMN) before being spun off in 2016. It was reacquired in 2021 and divested again in 2024 after a battle with European regulators.
Uncertainty put a damper on long-term strategy and caused volatility in the share price. But the stock is up 188% from its June spinoff.
That includes a 120% run since January 1 thanks to news that its Galleri blood test will see sales jump as much as 30% this fiscal year to deliver on its long-term growth prospects.
Innovative development-stage health care stocks are always risky, since a bad result from FDA reviews and patient trials could drive the company to zero almost overnight.
But, from what we've seen, GRAL is a momentum stock with a lot of promise that seems to be delivering in 2025 and beyond.
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Hims & Hers Health
- Market value: $13.0 billion
- Sector: Consumer defensive
- YTD return: 153.1%
Hims & Hers Health (HIMS, $) is a mid-cap telehealth company that takes some of the embarrassment out of confronting personal issues like hair loss and sexual performance through virtual visits and mail-order treatments.
It offers a range of health and wellness services including mental health visits and consultation on prescription medications as well as recurring fulfillment on those drugs.
Beyond its prescription operations and licensed healthcare staff, HIMS also offers a host of over-the-counter products and cosmetics including vitamin supplements and skincare treatments to ensure its customers are doing their "self care" the right way.
This one-two punch of serving two fast-growing marketplaces with minimal overhead has fueled an amazing revenue surge of almost 70% in fiscal 2024, with projections for more than 40% growth in fiscal 2025.
It's no surprise this momentum stock is also up dramatically.
And, lest you think this is just a low-cost leader chasing market share at a loss, HIMS is comfortably profitable and projecting better earnings this year – four times better, in fact.
Full-year earnings are set to leap from 22 cents per share to more than 80 cents, according to the latest forecasts.
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Super Micro Computer
- Market value: $24.9 billion
- Sector: Technology
- YTD return: 40.3%
Super Micro Computer (SMCI, $41.63) was founded way back in 1993. The company helped build the early backbone of the internet through server sales and support. It remains one of the largest producers of high-performance servers and data-storage infrastructure in the world.
And, in the age of data-intensive artificial intelligence as well as data-hungry cloud computing services, SMCI hardware is in demand more than ever.
Super Micro Computer hit a bit of a roadblock last year, delaying its annual report due to accounting issues and being de-listed from the flagship Nasdaq-100 index as a result.
But SMCI stock surged in January and into February on news it would meet its deadline to file a revised report – as well as on hope the results would meet Wall Street estimates.
That includes a fiscal 2025 forecast of 60% revenue growth and expectations the stock will rejoin major tech indexes and re-attract institutional buyers.
As a result of these developments, this momentum stock surged as much as 97.7% as of February 19. SMCI has been volatile since then but continues to stand apart from the broader market this year.
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Tempus AI
- Market value: $10.1 billion
- Sector: Health care
- YTD return: 84.9%
If you've been chasing AI stocks over the last year, you know all too well it's easy to arrive late for the biggest moves after other investors crowd in first.
But Tempus AI (TEM, $58.23) is one of the late-bloomers in the space, getting a huge boost only recently thanks to a new software service and insider buying activity.
Specifically, the health care AI company unveiled new functionality in its generative AI assistant, Tempus One, which helps physicians and researchers assess clinical data and bring new drugs to market faster.
Precision oncology treatments are now the norm, as no form of cancer responds the same way even if patients present similar charts.
With many oncologists and primary care physicians too busy or overwhelmed with data to tailor treatments, Tempus One offers breakthrough capabilities to make sense of unstructured data.
Tempus AI is still unprofitable. But, thanks in part to Tempus One, management forecast nearly 80% revenue growth in its next fiscal year.
And TEM has attracted the attention of former Speaker of the House Nancy Pelosi, who disclosed a major purchase of call options in the stock.
The "smart money" seems to like what it sees in this AI play, and the momentum stock has put up tremendous returns as a result.
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ThredUp
- Market value: $832.5 billion
- Sector: Consumer discretionary
- YTD return: 416.5%
The fashion industry doesn't know how to take a break during a recession. Sales of expensive clothes and luxury goods historically remain quite durable even if other discretionary categories see rollbacks.
ThredUp (TDUP, $7.04) is capitalizing on this long-term trend through an innovative "virtual thrift shop."
This isn't like searching through the racks at your local Goodwill or surfing unwearable bargain items on eBay (EBAY). ThredUp is the go-to destination for more than 50,000 brands, from The Gap to Gucci. And the bargain-conscious can sometimes find high-end deals at 90% off the former retail price.
There is a counter-cyclical element to the ThredUp business model, as hard times leave people less willing to pay full price (even if they maintain their distinct tastes).
So TDUP stock can stand up in a spending downturn. And when times are good, as they have been in recent years, the sky is the limit on how much it can grow.
The retailer is expected to record roughly double-digit revenue growth for the fourth quarter. More importantly, management expects to see significant improvement in margins as it moves towards profitability.
There is risk here, as selling apparel isn't exactly a business with a wide moat. But ThredUp continues to connect with both buyers and sellers.
And this momentum stock may have a value proposition that lasts as it expands its digital footprint.
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