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3 Overrated Stocks We Steer Clear Of

CWH Cover Image

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.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. On that note, here are three overhyped stocks that may correct and some you should consider instead.

Camping World (CWH)

One-Month Return: +36.8%

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE: CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Why Do We Think CWH Will Underperform?

  1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
  2. Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $13.38 per share, Camping World trades at 17.8x forward P/E. To fully understand why you should be careful with CWH, check out our full research report (it’s free).

Mission Produce (AVO)

One-Month Return: +17.8%

Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.

Why Do We Avoid AVO?

  1. Smaller revenue base of $1.39 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  2. Forecasted revenue decline of 12.3% for the upcoming 12 months implies demand will fall off a cliff
  3. Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 11.9%

Mission Produce is trading at $13.66 per share, or 18.5x forward P/E. Read our free research report to see why you should think twice about including AVO in your portfolio.

WSFS Financial (WSFS)

One-Month Return: +21.2%

Founded in 1832 as Wilmington Savings Fund Society and one of the oldest banks in America still operating under its original name, WSFS Financial (NASDAQ: WSFS) operates a community banking and wealth management franchise primarily serving customers in the Mid-Atlantic region through its main subsidiary, WSFS Bank.

Why Are We Cautious About WSFS?

  1. Net interest income trends were unexciting over the last five years as its 9.3% annual growth was below the typical banking firm
  2. Estimated net interest income growth of 2.6% for the next 12 months implies demand will slow from its five-year trend
  3. Net interest margin dropped by 26.9 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market

WSFS Financial’s stock price of $68.52 implies a valuation ratio of 1.2x forward P/B. If you’re considering WSFS for your portfolio, see our FREE research report to learn more.

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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