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.
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 stocks getting more buzz than they deserve and some you should buy instead.
FormFactor (FORM)
One-Month Return: +24.1%
With customers across the foundry and fabless markets, FormFactor (NASDAQ: FORM) is a US-based provider of test and measurement technologies for semiconductors.
Why Do We Steer Clear of FORM?
- Annual revenue growth of 3.7% over the last five years was below our standards for the semiconductor sector
- Free cash flow margin shrank by 13.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam
FormFactor’s stock price of $38.13 implies a valuation ratio of 33.4x forward P/E. To fully understand why you should be careful with FORM, check out our full research report (it’s free for active Edge members).
Blink Charging (BLNK)
One-Month Return: +44.8%
One of the first EV charging companies to go public, Blink Charging (NASDAQ: BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.
Why Does BLNK Give Us Pause?
- Muted 5.4% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Blink Charging is trading at $1.97 per share, or 1.7x forward price-to-sales. Read our free research report to see why you should think twice about including BLNK in your portfolio.
Byrna (BYRN)
One-Month Return: +32.3%
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ: BYRN) is a provider of non-lethal weapons.
Why Does BYRN Worry Us?
- Persistent operating margin losses suggest the business manages its expenses poorly
- Negative free cash flow raises questions about the return timeline for its investments
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $26.50 per share, Byrna trades at 29x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BYRN doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 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).
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