The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.
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.
Wolverine Worldwide (WWW)
One-Month Return: +36.2%
Founded in 1883, Wolverine Worldwide (NYSE: WWW) is a global footwear company with a diverse portfolio of brands including Merrell, Hush Puppies, and Saucony.
Why Should You Dump WWW?
- Products and services aren't resonating with the market as its revenue declined by 1.6% annually over the last five years
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 5.3% annually, worse than its revenue
- Negative returns on capital show management lost money while trying to expand the business, and its shrinking returns suggest its past profit sources are losing steam
Wolverine Worldwide is trading at $31.16 per share, or 24.9x forward P/E. To fully understand why you should be careful with WWW, check out our full research report (it’s free).
Rockwell Automation (ROK)
One-Month Return: -3.5%
One of the first companies to address industrial automation, Rockwell Automation (NYSE: ROK) sells products that help customers extract more efficiency from their machinery.
Why Do We Avoid ROK?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 8.9% annually, worse than its revenue
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $338 per share, Rockwell Automation trades at 29.7x forward P/E. Dive into our free research report to see why there are better opportunities than ROK.
Lincoln Financial Group (LNC)
One-Month Return: +12.5%
Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE: LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.
Why Do We Steer Clear of LNC?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Net premiums earned remained stagnant over the last two years, indicating expansion challenges this cycle
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 15.9% annually over the last five years
Lincoln Financial Group’s stock price of $42.67 implies a valuation ratio of 1x forward P/B. Check out our free in-depth research report to learn more about why LNC doesn’t pass our bar.
Stocks We Like More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. 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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