The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to new product launches, positive news, or even a dedicated social media following.

But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. On that note, here are three stocks getting more buzz than they deserve and some you should buy instead.

Nextdoor (KIND)

One-Month Return: +18.9%

Helping residents figure out what's happening on their block in real time, Nextdoor (NYSE: KIND) is a social network that connects neighbors with each other and with local businesses.

Why Do We Pass on KIND?

1. Choice to prioritize new users over monetization has resulted in weak growth in its average revenue per user
2. Suboptimal cost structure is highlighted by its history of EBITDA margin losses
3. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

Nextdoor’s stock price of $1.89 implies a valuation ratio of 3.5x forward price-to-gross profit. If you’re considering KIND for your portfolio, see our FREE research report to learn more.

Jack in the Box (JACK)

One-Month Return: +40.2%

Delighting customers since its inception in 1951, Jack in the Box (NASDAQ: JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.

Why Is JACK Risky?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
2. Efficiency has decreased over the last year as its operating margin fell by 24.2 percentage points
3. High net-debt-to-EBITDA ratio of 10× could force the company to raise capital at unfavorable terms if market conditions deteriorate

At $25 per share, Jack in the Box trades at 4.7x forward P/E. To fully understand why you should be careful with JACK, check out our full research report (it’s free).

Alta (ALTG)

One-Month Return: +31.4%

Founded in 1984, Alta Equipment Group (NYSE: ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.

Why Do We Steer Clear of ALTG?

1. 5.8% annual revenue growth over the last two years was slower than its industrials peers
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Alta is trading at $7.83 per share, or 1.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why ALTG doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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