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3 Hyped Up Stocks We Steer Clear Of

CLH Cover Image

Great things are happening to the stocks in this article. They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.

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.

Clean Harbors (CLH)

One-Month Return: +12.5%

Established in 1980, Clean Harbors (NYSE: CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.

Why Do We Think Twice About CLH?

  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. Estimated sales growth of 3.4% for the next 12 months implies demand will slow from its two-year trend
  3. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5% annually

At $238.73 per share, Clean Harbors trades at 30.4x forward P/E. To fully understand why you should be careful with CLH, check out our full research report (it’s free for active Edge members).

KeyCorp (KEY)

One-Month Return: +20.4%

Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.

Why Does KEY Give Us Pause?

  1. Muted 2.5% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
  2. Inferior net interest margin of 2.4% means it must compensate for lower profitability through increased loan originations
  3. Tangible book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle

KeyCorp’s stock price of $20.89 implies a valuation ratio of 1.3x forward P/B. Check out our free in-depth research report to learn more about why KEY doesn’t pass our bar.

Fulton Financial (FULT)

One-Month Return: +17.4%

Tracing its roots back to 1882 in the heart of Pennsylvania, Fulton Financial (NASDAQ: FULT) is a financial holding company that provides banking, lending, and wealth management services to consumers and businesses across five Mid-Atlantic states.

Why Are We Wary of FULT?

  1. Sales trends were unexciting over the last five years as its 8.5% annual growth was below the typical banking company
  2. Anticipated 3 percentage point rise in its efficiency ratio suggests its expenses will increase as a percentage of revenue
  3. Estimated tangible book value per share growth of 9.1% for the next 12 months implies profitability will slow from its two-year trend

Fulton Financial is trading at $20.43 per share, or 1.1x forward P/B. Read our free research report to see why you should think twice about including FULT in your portfolio.

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 Strong Momentum Stocks for this week. 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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