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.

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 that are likely overheated and some you should look into instead.

Progyny (PGNY)

One-Month Return: -1.1%

Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ: PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.

Why Is PGNY Not Exciting?

1. Modest revenue base of $1.27 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
2. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Progyny is trading at $26.04 per share, or 13.4x forward P/E. To fully understand why you should be careful with PGNY, check out our full research report (it’s free).

Zions Bancorporation (ZION)

One-Month Return: -0.6%

Founded in 1873 during Utah's pioneer era and named after Mount Zion in the Bible, Zions Bancorporation (NASDAQ: ZION) operates seven regional banks across the Western United States, providing commercial, retail, and wealth management services to over a million customers.

Why Does ZION Fall Short?

1. Sales stagnated over the last two years and signal the need for new growth strategies
2. Forecasted net interest income decline of 37.2% for the upcoming 12 months implies demand will fall off a cliff
3. Flat earnings per share over the last two years lagged its peers

At $58.82 per share, Zions Bancorporation trades at 1.2x forward P/B. If you’re considering ZION for your portfolio, see our FREE research report to learn more.

Comerica (CMA)

One-Month Return: +2.7%

Founded in 1849 during the California Gold Rush era, Comerica (NYSE: CMA) is a financial services company that provides commercial banking, retail banking, and wealth management services to businesses and individuals.

Why Do We Steer Clear of CMA?

1. 3% annual net interest income growth over the last five years was slower than its banking peers
2. Sales were less profitable over the last two years as its earnings per share fell by 23% annually, worse than its revenue declines
3. Tangible book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle

Comerica’s stock price of $90.50 implies a valuation ratio of 1.6x forward P/B. Read our free research report to see why you should think twice about including CMA in your portfolio.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.