The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.

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 overhyped stocks that may correct and some you should consider instead.

Laureate Education (LAUR)

One-Month Return: +18.7%

Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ: LAUR) is a global network of higher education institutions.

Why Does LAUR Fall Short?

1. Number of enrolled students has disappointed over the past two years, indicating weak demand for its offerings
2. Earnings per share fell by 2.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Low returns on capital reflect management’s struggle to allocate funds effectively

Laureate Education’s stock price of $27.34 implies a valuation ratio of 15.9x forward P/E. To fully understand why you should be careful with LAUR, check out our full research report (it’s free).

Goldman Sachs (GS)

One-Month Return: +3.6%

Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE: GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.

Why Are We Hesitant About GS?

1. Sizable revenue base leads to growth challenges as its 6.9% annual revenue increases over the last five years fell short of other financials companies

Goldman Sachs is trading at $750 per share, or 15.7x forward P/E. Read our free research report to see why you should think twice about including GS in your portfolio.

Essent Group (ESNT)

One-Month Return: +13.4%

Serving as a crucial bridge between homebuyers and the American dream of homeownership, Essent Group (NYSE: ESNT) provides private mortgage insurance and title services that enable lenders to offer home loans with down payments of less than 20%.

Why Is ESNT Not Exciting?

1. Growth in insurance policies was lackluster over the last five years as its 3.6% annual growth underperformed the typical financial institution
2. Expenses have increased as a percentage of revenue over the last two years as its pre-tax profit margin fell by 12.5 percentage points
3. Incremental sales over the last two years were less profitable as its 4.9% annual earnings per share growth lagged its revenue gains

At $63.61 per share, Essent Group trades at 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than ESNT.

Stocks We Like More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.