Exciting developments are taking place for the stocks in this article. They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.

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 getting more buzz than they deserve and some you should buy instead.

Trex (TREX)

One-Month Return: +15.7%

Addressing the demand for aesthetically-pleasing and unique outdoor living spaces, Trex Company (NYSE: TREX) makes wood-alternative decking, railing, and patio furniture.

Why Do We Pass on TREX?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. 6.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Waning returns on capital imply its previous profit engines are losing steam

At $41.45 per share, Trex trades at 26.5x forward P/E. Check out our free in-depth research report to learn more about why TREX doesn’t pass our bar.

Robert Half (RHI)

One-Month Return: +25.9%

With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE: RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.

Why Do We Avoid RHI?

1. Sales tumbled by 8.3% annually over the last two years, showing market trends are working against its favor during this cycle
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 13.3% annually
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Robert Half’s stock price of $34.43 implies a valuation ratio of 18x forward P/E. Dive into our free research report to see why there are better opportunities than RHI.

Lemonade (LMND)

One-Month Return: +14%

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 Does LMND Fall Short?

1. Incremental sales over the last two years were less profitable as its 17.4% annual earnings per share growth lagged its revenue gains
2. Annual book value per share declines of 7.2% for the past five years show its capital management struggled during this cycle
3. Negative return on equity shows that some of its growth strategies have backfired

Lemonade is trading at $86.63 per share, or 13.5x forward P/B. To fully understand why you should be careful with LMND, check out our full research report (it’s free).

Stocks We Like More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.