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.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here are three stocks that are likely overheated and some you should look into instead.

JLL (JLL)

One-Month Return: +10.3%

Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE: JLL) is a company specializing in real estate advisory and investment management services.

Why Should You Dump JLL?

1. Sizable revenue base leads to growth challenges as its 8.1% annual revenue increases over the last five years fell short of other consumer discretionary companies
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.8% for the last two years
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

JLL is trading at $352.83 per share, or 17.9x forward P/E. To fully understand why you should be careful with JLL, check out our full research report (it’s free for active Edge members).

EnerSys (ENS)

One-Month Return: +7.8%

Supplying batteries that power equipment as big as mining rigs, EnerSys (NYSE: ENS) manufactures various kinds of batteries for a range of industries.

Why Are We Wary of ENS?

1. Declining unit sales over the past two years imply it may need to invest in improvements to get back on track
2. Anticipated sales growth of 1.6% for the next year implies demand will be shaky
3. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 26.1%

At $158.60 per share, EnerSys trades at 14.2x forward P/E. Read our free research report to see why you should think twice about including ENS in your portfolio.

Lockheed Martin (LMT)

One-Month Return: +13.4%

Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE: LMT) specializes in defense, space, homeland security, and information technology products.

Why Do We Steer Clear of LMT?

1. Average backlog growth of 6.8% over the past two years was mediocre and suggests fewer customers signed long-term contracts
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 5.2% annually
3. Waning returns on capital imply its previous profit engines are losing steam

Lockheed Martin’s stock price of $527.92 implies a valuation ratio of 19x forward P/E. Check out our free in-depth research report to learn more about why LMT doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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.