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?

1. 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
2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 13.4%
3. 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?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
3. 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?

1. 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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