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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here are three stocks getting more buzz than they deserve and some you should buy instead.
G-III (GIII)
One-Month Return: +16%
Founded as a small leather goods business, G-III (NASDAQ:GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.
Why Do We Think GIII Will Underperform?
- Sales trends were unexciting over the last five years as its 6% annual growth was below the typical consumer discretionary company
- Performance over the past five years shows its incremental sales were less profitable, as its 3.5% annual earnings per share growth trailed its revenue gains
- Low free cash flow margin of 9.2% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
G-III’s stock price of $35.11 implies a valuation ratio of 13.9x forward P/E. To fully understand why you should be careful with GIII, check out our full research report (it’s free).
Old Dominion Freight Line (ODFL)
One-Month Return: +28.1%
With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ:ODFL) delivers less-than-truckload (LTL) and full-container load freight.
Why Does ODFL Fall Short?
- Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Old Dominion Freight Line is trading at $250.03 per share, or 42.6x forward P/E. Read our free research report to see why you should think twice about including ODFL in your portfolio.
Ryder (R)
One-Month Return: +16.1%
As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE:R) provides rental vehicles to businesses and delivers packages directly to homes or businesses.
Why Is R Not Exciting?
- Annual sales growth of 3% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- High input costs result in an inferior gross margin of 19.7% that must be offset through higher volumes
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
At $269.97 per share, Ryder trades at 17.5x forward P/E. Dive into our free research report to see why there are better opportunities than R.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.