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.

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 are three stocks getting more buzz than they deserve and some you should buy instead.

Teledyne (TDY)

One-Month Return: +1%

Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE: TDY) offers digital imaging and instrumentation products for various industries.

Why Are We Wary of TDY?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Free cash flow margin shrank by 2.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Teledyne’s stock price of $542.03 implies a valuation ratio of 24x forward P/E. Dive into our free research report to see why there are better opportunities than TDY.

Ryder (R)

One-Month Return: -0.3%

As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE: R) provides rental vehicles to businesses and delivers packages directly to homes or businesses.

Why Do We Steer Clear of R?

1. Annual sales growth of 3% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
2. Earnings per share have dipped by 7.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. Free cash flow margin dropped by 9.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $173.91 per share, Ryder trades at 12.3x forward P/E. Check out our free in-depth research report to learn more about why R doesn’t pass our bar.

MGIC Investment (MTG)

One-Month Return: +7%

Founded in 1957 when the modern mortgage insurance industry was in its infancy, MGIC Investment (NYSE: MTG) provides private mortgage insurance that protects lenders when homebuyers default on their loans, enabling borrowers to purchase homes with smaller down payments.

Why Is MTG Not Exciting?

1. Insurance products are facing significant market challenges during this cycle as net premiums earned has declined by 1.3% annually over the last five years
2. Day-to-day expenses have swelled relative to revenue over the last two years as its combined ratio increased by 10.7 percentage points
3. Earnings per share lagged its peers over the last two years as they only grew by 6.1% annually

MGIC Investment is trading at $27.33 per share, or 1.2x forward P/B. If you’re considering MTG for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. 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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