1 Momentum Stock Worth Your Attention and 2 We Turn Down

1 Momentum Stock Worth Your Attention and 2 We Turn Down

Jabin Bastian

Thu, February 19, 2026 at 1:43 PM GMT+9 3 min read

In this article:

•                                       StockStory Top Pick 
  

  HWM

  -0.48%

 ALV  

 -0.52%  

 

 

 TGNA  

 -0.05%  

Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here is one stock we think lives up to the hype and two that may correct.

Two Stocks to Sell:

TEGNA (TGNA)

One-Month Return: +10.8%

Spun out of Gannett in 2015, TEGNA (NYSE:TGNA) is a media company operating a network of television stations and digital platforms, focusing on local news and community content.

Why Do We Avoid TGNA?

Sales trends were unexciting over the last five years as its 1.3% annual growth was below the typical consumer discretionary company

Earnings growth underperformed the sector average over the last five years as its EPS grew by just 7.9% annually

Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

TEGNA’s stock price of $20.91 implies a valuation ratio of 9x forward P/E. Read our free research report to see why you should think twice about including TGNA in your portfolio, it’s free.

Autoliv (ALV)

One-Month Return: +1.6%

With products estimated to save over 30,000 lives annually in traffic accidents worldwide, Autoliv (NYSE:ALV) develops and manufactures passive safety systems for vehicles, including airbags, seatbelts, and steering wheels that protect occupants during crashes.

Why Are We Cautious About ALV?

Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.6% over the last two years was below our standards for the industrials sector

Estimated sales growth of 2.1% for the next 12 months is soft and implies weaker demand

Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 17.9%

Autoliv is trading at $125.14 per share, or 11.8x forward P/E. Check out our free in-depth research report to learn more about why ALV doesn’t pass our bar.

One Stock to Buy:

Howmet (HWM)

One-Month Return: +13.2%

Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.

Why Are We Bullish on HWM?

Impressive 11.5% annual revenue growth over the last two years indicates it’s winning market share this cycle

Share repurchases have amplified shareholder returns as its annual earnings per share growth of 42.8% exceeded its revenue gains over the last two years

Free cash flow margin expanded by 12.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

 






Story Continues  

At $249.44 per share, Howmet trades at 54.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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