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. On that note, here are three stocks that are likely overheated and some you should look into instead.
Bel Fuse (BELFA)
One-Month Return: +29.5%
Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ:BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.
Why Do We Think Twice About BELFA?
- Sales tumbled by 1.5% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share have contracted by 6.9% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
Bel Fuse is trading at $199.87 per share, or 32.6x forward P/E. If you’re considering BELFA for your portfolio, see our FREE research report to learn more.
Ryder (R)
One-Month Return: +8.5%
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 Do We Think R Will Underperform?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.5% over the last two years was below our standards for the industrials sector
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Free cash flow margin dropped by 5.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Ryder’s stock price of $203.10 implies a valuation ratio of 14.5x forward P/E. Read our free research report to see why you should think twice about including R in your portfolio.
QCR Holdings (QCRH)
One-Month Return: +9.9%
With roots dating back to 1993 and a name reflecting its original Quad Cities market, QCR Holdings (NASDAQGM:QCRH) operates four community banks across Iowa and Missouri, providing commercial, consumer banking, and trust services to businesses and individuals.
Why Does QCRH Give Us Pause?
- Sales trends were unexciting over the last two years as its 3.7% annual growth was below the typical banking company
- Annual net interest income growth of 8.9% over the last five years was below our standards for the banking sector
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.8% annually
At $92.09 per share, QCR Holdings trades at 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than QCRH.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.