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 stocks that are likely overheated and some you should look into instead.
The New York Times (NYT)
One-Month Return: +5.9%
Founded in 1851, The New York Times (NYSE: NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
Why Does NYT Give Us Pause?
- Performance surrounding its subscribers has lagged its peers
- Anticipated sales growth of 6.7% for the next year implies demand will be shaky
- Eroding returns on capital suggest its historical profit centers are aging
The New York Times is trading at $55.75 per share, or 26x forward P/E. To fully understand why you should be careful with NYT, check out our full research report (it’s free).
MYR Group (MYRG)
One-Month Return: +6%
Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ: MYRG) is a specialty contractor in the electrical construction industry.
Why Do We Avoid MYRG?
- Flat backlog over the past two years has disappointed and shows fewer customers signed long-term contracts
- Earnings per share fell by 1.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Eroding returns on capital suggest its historical profit centers are aging
At $162 per share, MYR Group trades at 26.2x forward P/E. Dive into our free research report to see why there are better opportunities than MYRG.
Verisk (VRSK)
One-Month Return: +8.2%
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Why Does VRSK Fall Short?
- Annual revenue growth of 1.9% over the last five years was below our standards for the business services sector
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 8.7% annually
Verisk’s stock price of $320.59 implies a valuation ratio of 44.4x forward P/E. Check out our free in-depth research report to learn more about why VRSK doesn’t pass our bar.
Stocks We Like More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
