1 Momentum Stock Worth Your Attention and 2 to Question
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 not so much.
One-Month Return: +11.6%
Started as a physical textbook rental service, Chegg (NYSE:CHGG) is now a digital platform addressing student pain points by providing study and academic assistance.
Why Should You Dump CHGG?
Value proposition isn't resonating strongly as its services subscribers averaged 13.4% drops over the last two years
Overall productivity fell over the last few years as its plummeting sales were accompanied by a decline in its EBITDA margin
Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
Chegg is trading at $1.35 per share, or 2.3x forward EV/EBITDA. If you're considering CHGG for your portfolio, see our FREE research report to learn more.
One-Month Return: +12.3%
Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ:MYRG) is a specialty contractor in the electrical construction industry.
Why Is MYRG Risky?
New orders were hard to come by as its backlog was flat over the past two years
Incremental sales over the last two years were much less profitable as its earnings per share fell by 34.5% annually while its revenue grew
Waning returns on capital imply its previous profit engines are losing steam
At $182 per share, MYR Group trades at 29.2x forward P/E. Read our free research report to see why you should think twice about including MYRG in your portfolio, it's free.
One-Month Return: +36.1%
Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Why Will COIN Beat the Market?
58.2% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
Incremental sales significantly boosted profitability as its annual earnings per share growth of 64.5% over the last two years outstripped its revenue performance
Robust free cash flow margin of 25.9% gives it many options for capital deployment, and its expanding margin gives it even more flexibility
Coinbase's stock price of $352.25 implies a valuation ratio of 27.5x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it's free.
Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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Employees are required to report monthly tips exceeding $20 to their employers, who must then withhold income and FICA taxes and report the amount to the IRS. The new tax law creates a deduction for qualified tip income, eliminating federal income taxes on up to $25,000 in tips for workers for tax years 2025 through 2028. The tax break starts to phase out for taxpayers with modified adjusted gross income (MAGI) of $150,000, or $300,000 if married filing jointly. (The value of the deduction will drop by $100 for every $1,000 of income above those amounts.) 'An estimated four million individuals receive tip income. So those people could see a significant tax benefit,' says Mark Luscombe, principal tax analyst with Wolters Kluwer Tax & Accounting. 'The deductions for tips are available to non-itemizers, so they can be claimed even if the taxpayer claims the standard deduction.' Workers will still need to report tip income and pay payroll taxes. While federal income tax will be withheld from paychecks, those amounts will be refunded when filing their income tax return. The tax break won't apply only to employees. Some independent contractors and business owners could also qualify, provided their business gross receipts exceed business deductions, losses and costs, including the cost of goods sold. Get started: Match with an advisor who can help you achieve your financial goals While this provision will eliminate taxes on tip income for millions of Americans, only a fraction of taxpayers may see a meaningful benefit. A study by the nonpartisan Tax Policy Center found that households earning $33,000 or less wouldn't benefit much, as they typically owe little to no federal income tax. Fully 40 percent of U.S. households that report tip income would not see any tax break from the proposal, according to the Tax Policy Center report. 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The Joint Committee on Taxation estimated that the tip provision would reduce federal revenues by $40 billion from fiscal years 2025 to 2034, with most of the impact concentrated between 2026 to 2029, when the deduction would be in effect. The Congressional Budget Office estimated exempting overtime pay would cost $124 billion through 2028. Some analysts also warn that eliminating taxes on overtime pay could disrupt the labor market. The Tax Foundation, a nonprofit tax policy group, said removing income taxes on overtime could 'distort' the labor market by encouraging more workers to take overtime shifts, potentially making hourly roles more attractive than salaried positions that are exempt from overtime rules. 'Although the bill tries to restrict businesses not currently relying on tip income and overtime pay from seeking to take advantage of these proposed changes, it is still possible that there could be shifts toward tip income and more overtime pay to try to take advantage of the deductions,' Luscombe says. Learn more: These 9 states have no income tax — that doesn't always mean you'll save money Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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In place of eliminating taxes on Social Security, Americans 65 or older will see a temporary 'bonus' deduction of up to $6,000 on their income taxes. This will be available to single filers making a modified adjusted gross income up to $75,000, or couples making up to $150,000, for tax years 2025 to 2028. Car buyers will be able to deduct up to $10,000 of interest per year on new auto loans. This is limited by income: it phases out for single filers with incomes above $100,000 (and $200,000 for married couples). It also only applies to cars assembled in the United States. This is available for those who itemize and those who do not. The bill provides above-the-line deductions for some tip income and overtime pay for certain workers, fulfilling one of Trump's campaign promises. That said, there are important restrictions to keep in mind about both. Those with tip income can deduct up to $25,000 for qualified tips from their federal tax bill, phasing out for those with income above $150,000. This is in place for tax years 2025 to 2028. 'It's essential to understand that this deduction doesn't directly reduce your taxes dollar-for-dollar, and your actual tax savings will depend on your tax rate,' notes TurboTax. Those earning overtime pay can deduct up to $12,500 ($25,000 for married couples filing jointly), depending on income. Like the tipped income provision, this is available for tax years 2025 through 2028 and phases out for income above $150,000. Because many tipped workers are low-income, almost 40% already don't pay federal taxes on their tips, says Meg Wheeler, certified public accountant and founder of The Equitable Money Project. Additionally, tipped workers should know they will still technically owe state and employment taxes like Social Security and Medicare on their tips—it's still reportable income. This is not a total exclusion from paying taxes. 'We know that lots of tipped workers don't necessarily report all of their tips. So just even right there, that will be an interesting shift,' says Wheeler. 'I also am curious about whether or not this pushes more employers or even more employees to want to move to a tipped model, because they think this is helpful.' Gerson says these provisions—which the IRS will need to write guidance on before they are implemented—may create additional discrepancies on how workers are taxed in the same workplace. That can lead to headaches for business owners, as well as create tension among employees who are compensated differently. 'If you take a restaurant, you have some people who are tipped and will benefit from the exclusion, and then you have people that aren't tipped and won't benefit from it,' he says. 'It just has an impact on workforce dynamics. Some people [may] no longer want to be salaried because they can get in overtime.' The bill makes a number of changes to the federal student loan program starting in 2026, many of which will make payments higher for borrowers. The bill reduces the number of income-based repayment plans, phasing out the Income-Contingent Repayment (ICR), Pay As You Earn (PAYE) and Saving on a Valuable Education (SAVE) plans starting in July 2026. Current borrowers will have two years to switch to a version of the Income-Based Repayment (IBR) plan, the standard repayment plan, or the Repayment Assistance Plan (RAP), a new offering. New borrowers, meanwhile, will only be able to enroll in the RAP. 'Many existing borrowers will see higher monthly payments under these new plans, though the current iteration of the bill at least allows more time to change plans,' says Kate Wood, loans expert and writer at NerdWallet. 'As of now, student loan forgiveness still appears to be on the table, though RAP requires up to 30 years of repayment first, a longer repayment timeline than any current plan.' One of the big differences, says Wheeler, is that RAP has a minimum monthly payment. This is different from some of the current income-based repayment plans, which allow some borrowers to pay very low amounts or nothing at all, depending on their earnings. 'Now, all of a sudden they have to jump up to this minimum just because that's the rule, that's the law,' says Wheeler. 'I think that's going to be, right off the bat, a huge issue.' It also lowers the limits on graduate school loans, eliminates the federal Grad PLUS program altogether, and caps Parent PLUS borrowing. These changes apply to new loans starting July 1, 2026. While the high cost of graduate school has been a target of people who want to reform the student loan system in the U.S., experts say limiting how many federal loans borrowers can take out won't solve much. Instead, it means they will have to rely on private loans—which have fewer protections for borrowers and potentially higher interest rates—or skip higher education altogether. Those attending professional school for law or medicine may have the most to lose. One of the more contentious aspects of passing the bill was what to do with the cap on state and local tax deductions, or the SALT cap. Trump's 2017 tax bill put a cap of $10,000 on it; that cap has been increased to $40,000. This is one of the most expensive provisions in the bill. Taxpayers in California, Illinois, New Jersey, and New York stand to benefit the most: They account for 40 of the 50 top congressional districts affected by the cap. The cap reverts to $10,000 in 2030. 'It's increased relief, but it is temporary,' says Gerson. 'And so it's something that Congress will have to revisit.' The bill establishes so-called Trump accounts, which are a new type of tax-favored account for newborns. Children born between 2025 and 2028 will receive $1,000. The bill makes dramatic cuts to Medicaid, which is the health care program for low-income, disabled, and some senior Americans. It will also affect those who have Affordable Care Act (ACA) health care coverage. People on Medicaid will face strict new work requirements for able-bodied adults, and eligibility checks will increase from every 12 months to every six months. Estimates put the number of those losing health coverage at around 16 million Americans. 'It's very likely that people will lose coverage even if they still qualify, just due to the administrative burden,' says Kate Ashford, investing specialist at NerdWallet. 'It's also likely that some hospitals in rural areas that rely on Medicaid funding will reduce services or close, meaning that people in those communities may have to travel far or go without care if they get sick or injured.' Americans with ACA health insurance coverage will have to re-verify eligibility for tax credits each year, adding an additional hurdle to renewing. It also does not extend the ACA subsidies that help many Americans afford their coverage. 'If those expire, ACA health insurance costs will go up substantially, placing real stress on people's budgets and potentially resulting in people dropping health insurance,' says Ashford. 'Many immigrants who are legally residing in the U.S. will also lose access to ACA subsidies, forcing many of them to end coverage and raising rates for people who remain on plans.' Allowing the subsidies to expire will also raise costs substantially on small business owners who rely on ACA coverage, says Ashford, as will the Medicaid cuts. She says small business owners and other entrepreneurs may find that health insurance coverage is now too expensive to enter the field. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
