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.
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.
Ralph Lauren (RL)
One-Month Return: +22.4%
Originally founded as a necktie company, Ralph Lauren (NYSE: RL) is an iconic American fashion brand known for its classic and sophisticated style.
Why Do We Pass on RL?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Operating margin of 14.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Free cash flow margin is projected to show no improvement next year
Ralph Lauren’s stock price of $399.90 implies a valuation ratio of 21.3x forward P/E. If you’re considering RL for your portfolio, see our FREE research report to learn more.
Knight-Swift Transportation (KNX)
One-Month Return: +17.4%
Covering 1.6 billion loaded miles in 2023 alone, Knight-Swift Transportation (NYSE: KNX) offers less-than-truckload and full truckload delivery services.
Why Do We Think KNX Will Underperform?
- Muted 1.1% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 19.3% annually while its revenue grew
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Knight-Swift Transportation is trading at $81.06 per share, or 35x forward P/E. Dive into our free research report to see why there are better opportunities than KNX.
WSFS Financial (WSFS)
One-Month Return: +7.7%
Founded in 1832 as Wilmington Savings Fund Society and one of the oldest banks in America still operating under its original name, WSFS Financial (NASDAQ: WSFS) operates a community banking and wealth management franchise primarily serving customers in the Mid-Atlantic region through its main subsidiary, WSFS Bank.
Why Are We Hesitant About WSFS?
- Annual net interest income growth of 9.7% over the last five years was below our standards for the banking sector
- Estimated net interest income growth of 3.3% for the next 12 months implies demand will slow from its five-year trend
- Estimated tangible book value per share growth of 9.3% for the next 12 months implies profitability will slow from its two-year trend
At $75.26 per share, WSFS Financial trades at 1.3x forward P/B. Read our free research report to see why you should think twice about including WSFS in your portfolio.
Stocks We Like More
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.
