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. On that note, here are three overhyped stocks that may correct and some you should consider instead.

RH (RH)

One-Month Return: +12%

Formerly known as Restoration Hardware, RH (NYSE: RH) is a specialty retailer that exclusively sells its own brand of high-end furniture and home decor.

Why Are We Hesitant About RH?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
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

RH is trading at $207.04 per share, or 18.5x forward P/E. Dive into our free research report to see why there are better opportunities than RH.

REV Group (REVG)

One-Month Return: +9.4%

Offering the first full-electric North American fire truck, REV (NYSE: REVG) manufactures and sells specialty vehicles.

Why Does REVG Give Us Pause?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Gross margin of 12% is below its competitors, leaving less money to invest in areas like marketing and R&D
3. Operating margin of 3% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments

REV Group’s stock price of $50.25 implies a valuation ratio of 18x forward P/E. If you’re considering REVG for your portfolio, see our FREE research report to learn more.

TTM Technologies (TTMI)

One-Month Return: +24%

As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ: TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.

Why Is TTMI Risky?

1. Sales trends were unexciting over the last two years as its 1.3% annual growth was below the typical business services company
2. 9.2 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. Underwhelming 4.7% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $44.26 per share, TTM Technologies trades at 21.2x forward P/E. Read our free research report to see why you should think twice about including TTMI in your portfolio.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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