The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.

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.

Rockwell Automation (ROK)

One-Month Return: +4.3%

One of the first companies to address industrial automation, Rockwell Automation (NYSE: ROK) sells products that help customers extract more efficiency from their machinery.

Why Do We Pass on ROK?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 8.9% annually, worse than its revenue
3. Eroding returns on capital suggest its historical profit centers are aging

Rockwell Automation’s stock price of $364.55 implies a valuation ratio of 32.7x forward P/E. If you’re considering ROK for your portfolio, see our FREE research report to learn more.

Vishay Precision (VPG)

One-Month Return: +24.7%

Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE: VPG) operates as a global provider of precision measurement and sensing technologies.

Why Should You Sell VPG?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.2% annually over the last two years
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 17.4% annually
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $39.96 per share, Vishay Precision trades at 38x forward P/E. To fully understand why you should be careful with VPG, check out our full research report (it’s free for active Edge members).

Vulcan Materials (VMC)

One-Month Return: -3.8%

Founded in 1909, Vulcan Materials (NYSE: VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.

Why Does VMC Give Us Pause?

1. 1.3% annual revenue growth over the last two years was slower than its industrials peers
2. Demand for its offerings was relatively low as its number of tons shipped has underwhelmed
3. High input costs result in an inferior gross margin of 25.2% that must be offset through higher volumes

Vulcan Materials is trading at $295.80 per share, or 30.2x forward P/E. Read our free research report to see why you should think twice about including VMC in your portfolio.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum 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 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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