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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here are three stocks getting more buzz than they deserve and some you should buy instead.

Levi's (LEVI)

One-Month Return: +6.5%

Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE: LEVI) is an apparel company renowned for its iconic denim products and classic American style.

Why Do We Avoid LEVI?

1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
2. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 4.9 percentage points
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Levi's is trading at $24.68 per share, or 15.9x forward P/E. Read our free research report to see why you should think twice about including LEVI in your portfolio.

First Advantage (FA)

One-Month Return: +5.7%

Processing over 200 million screens annually across more than 200 countries and territories, First Advantage (NASDAQ: FA) provides employment background screening, identity verification, and compliance solutions to help companies manage hiring risks.

Why Does FA Give Us Pause?

1. Earnings per share lagged its peers over the last four years as they only grew by 1.6% annually
2. 7.9 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its decreasing returns suggest its historical profit centers are aging

At $18.05 per share, First Advantage trades at 14.4x forward P/E. Dive into our free research report to see why there are better opportunities than FA.

Aflac (AFL)

One-Month Return: +4.6%

Known for its iconic duck mascot that has quacked "Aflac!" in commercials since 2000, Aflac (NYSE: AFL) provides supplemental health and life insurance policies that pay cash benefits directly to policyholders for expenses not covered by their primary insurance.

Why Do We Pass on AFL?

1. 6.2% annual declines in net premiums earned for the past five years indicates policy sales struggled this cycle
2. Projected book value per share decline of 4.8% for the next 12 months points to tough credit quality challenges ahead
3. Elevated debt-to-equity ratio of 1.9× suggests the firm is overleveraged and may struggle to secure additional financing

Aflac’s stock price of $117.25 implies a valuation ratio of 2x forward P/B. To fully understand why you should be careful with AFL, check out our full research report (it’s free).

Stocks We Like More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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.