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.

But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here is one stock with lasting competitive advantages and two not so much.

Two Momentum Stocks to Sell:

Great Lakes Dredge & Dock (GLDD)

One-Month Return: +19.5%

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Why Do We Steer Clear of GLDD?

1. Annual revenue growth of 1.8% over the last five years was below our standards for the industrials sector

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

3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Great Lakes Dredge & Dock is trading at $11.40 per share, or 16.3x forward P/E. To fully understand why you should be careful with GLDD, check out our full research report (it’s free).

Commercial Vehicle Group (CVGI)

One-Month Return: +52.6%

Formed from a partnership between two distinct companies, CVG (NASDAQ:CVGI) offers various components used in vehicles and systems used in warehouses.

Why Do We Think CVGI Will Underperform?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.8% annually over the last five years

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

3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Commercial Vehicle Group’s stock price of $1.39 implies a valuation ratio of 9.9x forward P/E. Read our free research report to see why you should think twice about including CVGI in your portfolio, it’s free.

One Momentum Stock to Watch:

Warby Parker (WRBY)

One-Month Return: +28.2%

Founded in 2010, Warby Parker (NYSE:WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.

Why Could WRBY Be a Winner?

1. Fast expansion of new stores indicates an aggressive approach to attacking untapped market opportunities

2. Earnings growth has massively outpaced its peers over the last three years as its EPS has compounded at 62.4% annually

3. Free cash flow margin expanded by 3.4 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends