Exciting developments are taking place for the stocks in this article. They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.

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 lasting competitive advantages and two not so much.

One-Month Return: +13.7%

Based in Pittsburgh, WESCO (NYSE:WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.

Why Do We Think Twice About WCC?

Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth

Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

Poor free cash flow margin of 2.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

WESCO’s stock price of $205.87 implies a valuation ratio of 14.5x forward P/E. Check out our free in-depth research report to learn more about why WCC doesn’t pass our bar.

One-Month Return: +13.8%

One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.

Why Is BA Risky?

Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases

Cash-burning history makes us doubt the long-term viability of its business model

Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

At $229.18 per share, Boeing trades at 32.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than BA.

One-Month Return: +28.2%

Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ:MGNI) operates the world’s largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.

Why Is MGNI a Top Pick?

Market share has increased this cycle as its 33.3% annual revenue growth over the last five years was exceptional

MGNI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business

Historical investments are beginning to pay off as its returns on capital are growing

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