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3 Inflated Stocks Facing Headwinds

LIND 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. All that said, here are three stocks getting more buzz than they deserve and some you should buy instead.

Lindblad Expeditions (LIND)

One-Month Return: +12%

Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ: LIND) offers cruising experiences to remote destinations in partnership with National Geographic.

Why Should You Sell LIND?

  1. Sales trends were unexciting over the last five years as its 14.9% annual growth was below the typical consumer discretionary company
  2. Earnings per share fell by 29.7% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
  3. Negative returns on capital show management lost money while trying to expand the business

Lindblad Expeditions is trading at $12.79 per share, or 6.2x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including LIND in your portfolio.

Tilray (TLRY)

One-Month Return: +30.4%

Founded in 2013, Tilray Brands (NASDAQ: TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.

Why Do We Think TLRY Will Underperform?

  1. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 70.1 percentage points
  2. Incremental sales over the last three years were much less profitable as its earnings per share fell by 60.5% annually while its revenue grew
  3. Increased cash burn over the last year raises questions about the return timeline for its investments

At $0.53 per share, Tilray trades at 6.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why TLRY doesn’t pass our bar.

Lemonade (LMND)

One-Month Return: +3.7%

Built on the principle of giving back unused premiums to charitable causes selected by policyholders, Lemonade (NYSE: LMND) is a technology-driven insurance company that offers homeowners, renters, pet, car, and life insurance through an AI-powered digital platform.

Why Is LMND Not Exciting?

  1. Earnings growth underperformed the sector average over the last four years as its EPS grew by just 6.3% annually
  2. Book value per share tumbled by 184% annually over the last five years, showing insurance sector trends are working against its favor during this cycle
  3. Negative return on equity shows management lost money while trying to expand the business

Lemonade’s stock price of $42.48 implies a valuation ratio of 6.9x forward P/B. If you’re considering LMND for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

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 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% 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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