Momentum Stocks – A Look at Three Top Names YTD (HIMS, TEM, OKLO)

Momentum names were harshly treated back when markets were taking a tariff induced breather, but today's market presents a different set of challenges to navigate. There continue to be a compelling array of momentum stocks, each offering distinct risk-reward profiles.

The basic idea behind momentum trading is that a stock that has started to trend upwards is more likely to continue to rise in price than to fall. The principle is that once price starts going up, more and more traders and speculators will be interested in buying. That buying pressure means prices will continue to go up as demand outstrips supply. Yet trends can reverse, and prudent risk management is required.

Today, we'll we are looking at three of the strongest momentum stocks of the year so far: Hims & Hers Health (NYSE: HIMS), Tempus AI (NASDAQ: TEM), and Oklo Inc. (NASDAQ: OKLO). These companies, operating across telehealth, AI-driven healthcare, and advanced nuclear energy, respectively, stand near the top of the momentum stocks so far in 2025. Let's take a closer look.

Hims & Hers Health (NYSE: HIMS)

Hims & Hers Health stock, currently trading at $56.77, has demonstrated impressive strength and growth over the past year, boasting an 177% return on the period. This performance reflects the increasing adoption of telemedicine and the company's expanding product offerings in both men's and women's health.

Analysts are generally bullish,  and some more optimistic calls projecting even higher valuations. HIMS's success is underpinned by robust revenue growth, exceeding 110.67% year-over-year, and improving gross margins, indicating a clear trajectory towards profitability. Its earnings per share stands at $0.28, which is a 177.38% year-on-year increase.

However, the stock's journey hasn't been without its bumps. The FDA's announcement in February 2025 ending the shortage of semaglutide drugs, which HIMS had been compounding, caused a significant stock price drop.

HIMS' average price target sitting at $47.56 however reflects a stock price that has disconnected from analysts' view, with the street not keeping pace. In recent updates, Citi kept a “Sell” rating on the shares and a $30 price target. BofA are of the same mindset, and maintain an “Underperform” rating on the shares, with a price target of $28. Price target revisions have come about since the announcement of Cigna's Evernorth launching a benefit which enables a price cap on Wegovy and Zepbound at $200 per month.

Recent upside catalysts include the acquisition of Trybe Labs, enabling at-home blood testing, as well as the subsequent partnership with Novo Nordisk to offer Wegovy through its platform. Even the FDA's clarification allowing continued compounding of GLP-1 drugs until specific dates provided a temporary boost.

This volatility underscores the sensitivity of HIMS to regulatory changes and strategic partnerships, making it a dynamic, though potentially risky, investment.

Tempus AI (NASDAQ: TEM)

Tempus AI operates at the intersection of AI and healthcare, focusing on precision medicine and leveraging data-driven insights. Tempus AI's stock (NASDAQ: TEM) has found itself on quite the number of watchlists since it's IPO, and is currently priced at $63.47 after a gain of 15% in Monday's trading session. This has brought YTD gains in TEM to an impressive 85%.

Analysts continue to lean bullish on TEM's future, setting initial price targets between $55 and $70, citing its unique position in the rapidly evolving AI healthcare sector. It's average price target of $65.50 currently sits just above current price action, after recent raises from the street.

Tempus AI is characterized as a high-growth, high-risk play. While not yet profitable, the company is experiencing strong revenue growth, estimated at 35-50% for the current year. This growth is fueled by significant investments in technology and data infrastructure, essential for its AI-driven operations.

With a market capitalization around $9.55 billion, Tempus AI is betting on the long-term potential of AI in healthcare.

Oklo Inc. (NYSE: OKLO)

Oklo's stock, trading around $55.90, presents a distinctly different proposition from a fundamental, but the growth has been there in price nonetheless with market cap soaring above $7.3 billion. As a pre-revenue company focused on developing and commercializing small-scale nuclear reactors, Oklo is a more speculative than some of the other momentum names. That being said, the stock has been a runaway success for bulls in 2025, gaining 140% since the start of the year.

It appears that this morning's pre-market action could deliver more of the same for bulls, with an indicative gain of 6.60% leading into the open.

Analyst price targets range from $30 to $74, with the average price target of $54.04 slightly below where the stock looks to open this morning. Price targets reflect both the early stage of commercialization and the excitement surrounding advanced nuclear energy. William Blair have initiated coverage of Oklo yesterday with an Outperform rating, whilst in recent days CLSA have raised the firm's price target from $50 to $74 and have kept an “Outperform” rating on the shares. Wedbush have also raised the firm's price target on Oklo from $45 from $55 and kept an “Outperform” rating.

Oklo's future is contingent upon regulatory approvals, technological breakthroughs, and successful deployment of its prototypes.

Comparing The Three

HIMS, with its established telehealth platform and improving profitability, represents a relatively more mature growth story, albeit one sensitive to regulatory and competitive pressures.

Tempus AI, while still in its early stages, offers exposure to the burgeoning field of AI in healthcare, but requires significant investment and carries the risk of technological obsolescence.

Oklo, on the other hand, is a play on the future of advanced nuclear energy, with substantial regulatory and technological hurdles to overcome.

Anyone considering momentum stocks must carefully weigh their risk tolerance and investment horizon. Catching a move too late has the potential to be disastrous for a portfolio if sentiment shifts, although not catching a run at all can be a psychological loss that avoids a financial one.

Momentum, being what it is, can switch in a flash, yet each of the three above have built strong followings after recent rally's. OKLO appears to be closest to run into potential resistance, with a hold above $55, and the 52 week high of $59.14 the next levels to watch. A breakout above these levels that takes place on significant volume could set the company up for continued growth, although some friction at these points could be expected.

From an analyst perspective, each of the stocks has outpaced the average price target on the street, although the bull case target on HIMS remains the most opinion splitting, with both the bull, and bear targets wider than the others.

Picking the very bottom and top of a trend is almost impossible, and making money is not necessarily about trading perfectly. Remember the old trading floor adage to “join the party late and leave it early”, certainly not a bad move in these types of names.