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.

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

Standex (SXI)

One-Month Return: +4.4%

Holding over 500 patents globally, Standex (NYSE: SXI) is a manufacturer and distributor of industrial components for various sectors.

Why Does SXI Fall Short?

1. Estimated sales growth of 4.5% for the next 12 months implies demand will slow from its two-year trend
2. Free cash flow margin dropped by 3.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Standex’s stock price of $267.05 implies a valuation ratio of 29.5x forward P/E. If you’re considering SXI for your portfolio, see our FREE research report to learn more.

Texas Capital Bank (TCBI)

One-Month Return: +12.1%

Founded during the Texas banking renaissance of the 1990s with an entrepreneurial spirit, Texas Capital Bancshares (NASDAQ: TCBI) is a financial services firm that provides banking, wealth management, and investment banking services to businesses and individuals across Texas and beyond.

Why Is TCBI Not Exciting?

1. Net interest income trends were unexciting over the last five years as its 3.9% annual growth was below the typical banking firm
2. Estimated net interest income growth of 4.4% for the next 12 months is soft and implies weaker demand
3. ROE of 7.4% reflects management’s challenges in identifying attractive investment opportunities

At $103.15 per share, Texas Capital Bank trades at 1.2x forward P/B. Check out our free in-depth research report to learn more about why TCBI doesn’t pass our bar.

National Bank Holdings (NBHC)

One-Month Return: +6.6%

Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE: NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.

Why Should You Sell NBHC?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 1.4% annually over the last two years
2. Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable
3. Estimated tangible book value per share growth of 2.4% for the next 12 months implies profitability will slow from its two-year trend

National Bank Holdings is trading at $41.61 per share, or 1.1x forward P/B. Read our free research report to see why you should think twice about including NBHC in your portfolio.

Stocks We Like More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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.