Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.

But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here are three stocks that are likely overheated and some you should look into instead.

Boeing (BA)

One-Month Return: +2.5%

One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE: BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.

Why Do We Think BA Will Underperform?

1. Flat unit sales over the past two years imply it may need to invest in improvements to get back on track
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $235.05 per share, Boeing trades at 171.8x forward P/E. If you’re considering BA for your portfolio, see our FREE research report to learn more.

Tutor Perini (TPC)

One-Month Return: +13.3%

Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE: TPC) is a civil and building construction company offering diversified general contracting and design-build services.

Why Do We Steer Clear of TPC?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. Earnings per share fell by 32.4% annually over the last five years while its revenue was flat, partly because it diluted shareholders
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Tutor Perini’s stock price of $56.75 implies a valuation ratio of 22.2x forward P/E. Read our free research report to see why you should think twice about including TPC in your portfolio.

Telephone and Data Systems (TDS)

One-Month Return: +5.7%

Operating primarily through its majority-owned subsidiary UScellular and wholly-owned TDS Telecom, Telephone and Data Systems (NYSE: TDS) provides wireless, broadband, video, and voice communications services to 4.6 million wireless and 1.2 million broadband customers across the United States.

Why Are We Out on TDS?

1. Sales tumbled by 1.5% annually over the last five years, showing market trends are working against its favor during this cycle
2. Earnings per share have dipped by 21.9% annually over the past five years, which is concerning because stock prices follow EPS over the long term
3. High net-debt-to-EBITDA ratio of 20× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Telephone and Data Systems is trading at $38.50 per share, or 3.8x forward EV-to-EBITDA. To fully understand why you should be careful with TDS, check out our full research report (it’s free).

Stocks We Like More

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 Growth Stocks for this month. 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 Comfort Systems (+782% 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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