The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here are three overhyped stocks that may correct and some you should consider instead.
Expeditors (EXPD)
One-Month Return: +9.1%
Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.
Why Does EXPD Fall Short?
- Annual sales growth of 3.3% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 13.4%
- Eroding returns on capital suggest its historical profit centers are aging
At $148.11 per share, Expeditors trades at 25x forward P/E. Read our free research report to see why you should think twice about including EXPD in your portfolio.
TopBuild (BLD)
One-Month Return: +7.4%
Established in 2015 following a spinoff from Masco Corporation, TopBuild (NYSE: BLD) is a distributor and installer of insulation and other building products.
Why Is BLD Not Exciting?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Earnings per share lagged its peers over the last two years as they only grew by 2.5% annually
TopBuild is trading at $449.83 per share, or 21.6x forward P/E. Dive into our free research report to see why there are better opportunities than BLD.
Morgan Stanley (MS)
One-Month Return: +6.2%
Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley (NYSE: MS) is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.
Why Do We Think Twice About MS?
- Large asset base makes it harder to grow tangible book value per share quickly, and its annual tangible book value per share growth of 1.7% over the last five years was below our standards for the financials sector
Morgan Stanley’s stock price of $174.10 implies a valuation ratio of 16.2x forward P/E. If you’re considering MS for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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