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. On that note, here are three overhyped stocks that may correct and some you should consider instead.
Keysight (KEYS)
One-Month Return: +8.8%
Spun off from Hewlett-Packard in 2014, Keysight (NYSE:KEYS) offers electronic measurement products for use in various sectors.
Why Do We Think Twice About KEYS?
- Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 1.1% for the past two years was weak
- Sales over the last two years were less profitable as its earnings per share fell by 7.3% annually while its revenue was flat
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Keysight’s stock price of $227.13 implies a valuation ratio of 26.8x forward P/E. If you’re considering KEYS for your portfolio, see our FREE research report to learn more.
East West Bank (EWBC)
One-Month Return: -1.5%
As the largest independent bank in the U.S. focused on bridging financial services between America and Asia, East West Bancorp (NASDAQ:EWBC) operates a commercial bank that provides personal and business banking services with a unique focus on facilitating U.S.-Asia cross-border transactions.
Why Are We Wary of EWBC?
- Annual revenue growth of 5.4% over the last two years was below our standards for the banking sector
- Net interest margin shrank by 25.3 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
- Earnings per share lagged its peers over the last two years as they only grew by 5.4% annually
East West Bank is trading at $114.62 per share, or 1.6x forward P/B. To fully understand why you should be careful with EWBC, check out our full research report (it’s free).
Hamilton Insurance Group (HG)
One-Month Return: +1.6%
Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE:HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.
Why Is HG Not Exciting?
- Sales are projected to tank by 2% over the next 12 months as demand evaporates
- Operational productivity has decreased over the last two years as its combined ratio worsened by 5.9 percentage points
- Earnings per share have dipped by 56.9% annually over the past one years, which is concerning because stock prices follow EPS over the long term
At $27.75 per share, Hamilton Insurance Group trades at 1x forward P/B. Dive into our free research report to see why there are better opportunities than HG.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 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.