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. Keeping that in mind, here are three stocks getting more buzz than they deserve and some you should buy instead.
Woodward (WWD)
One-Month Return: +5.2%
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ: WWD) designs, services, and manufactures energy control products and optimization solutions.
Why Are We Cautious About WWD?
- Annual revenue growth of 4.9% over the last five years was below our standards for the industrials sector
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 7.1% annually
- Free cash flow margin shrank by 11.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $260.50 per share, Woodward trades at 35.4x forward P/E. Dive into our free research report to see why there are better opportunities than WWD.
Sanmina (SANM)
One-Month Return: +23.3%
Founded in 1980, Sanmina (NASDAQ: SANM) is an electronics manufacturing services company offering end-to-end solutions for various industries.
Why Are We Hesitant About SANM?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.6% annually over the last two years
- High input costs result in an inferior gross margin of 8.3% that must be offset through higher volumes
- Earnings per share have dipped by 1.2% annually over the past two years, which is concerning because stock prices follow EPS over the long term
Sanmina is trading at $159.39 per share, or 18.5x forward P/E. Check out our free in-depth research report to learn more about why SANM doesn’t pass our bar.
CME Group (CME)
One-Month Return: +6.5%
Born from the Chicago Mercantile Exchange founded in 1898 as a butter and egg trading venue, CME Group (NASDAQ: CME) operates the world's largest derivatives marketplace where traders can buy and sell futures and options contracts across interest rates, equities, currencies, commodities, and more.
Why Do We Think Twice About CME?
- Annual revenue growth of 5.4% over the last five years was below our standards for the financials sector
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 9.8% annually
CME Group’s stock price of $285.40 implies a valuation ratio of 25x forward P/E. If you’re considering CME for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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 Kadant (+351% 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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