Great things are happening to the stocks in this article. They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here are three stocks getting more buzz than they deserve and some you should buy instead.

Kulicke and Soffa (KLIC)

One-Month Return: +35.1%

Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices

Why Does KLIC Fall Short?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.6% annually over the last five years
2. Operating profits fell over the last five years as its sales dropped and it struggled to adjust its fixed costs
3. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 29.8% annually, worse than its revenue

Kulicke and Soffa is trading at $83.50 per share, or 29.5x forward P/E. Read our free research report to see why you should think twice about including KLIC in your portfolio.

Hain Celestial (HAIN)

One-Month Return: +16.9%

Sold in over 75 countries around the world, Hain Celestial (NASDAQ: HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.

Why Are We Out on HAIN?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
3. High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $0.74 per share, Hain Celestial trades at 43x forward P/E. Check out our free in-depth research report to learn more about why HAIN doesn’t pass our bar.

First American Financial (FAF)

One-Month Return: +20.6%

Tracing its roots back to 1889 when California was experiencing its first major real estate boom, First American Financial (NYSE: FAF) provides title insurance, settlement services, and risk solutions for residential and commercial real estate transactions across the United States and internationally.

Why Do We Think Twice About FAF?

1. Insurance offerings faced market headwinds this cycle, reflected in stagnant net premiums earned over the last five years
2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 1.4% annually
3. Annual book value per share growth of 3.6% over the last five years was below our standards for the insurance sector

First American Financial’s stock price of $71.83 implies a valuation ratio of 1.2x forward P/B. Read our free research report to see why you should think twice about including FAF in your portfolio.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

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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.