Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here are three stocks getting more buzz than they deserve and some you should buy instead.
Movado (MOV)
One-Month Return: +0.1%
With its watches displayed in 20 museums around the world, Movado (NYSE: MOV) is a watchmaking company with a portfolio of watch brands and accessories.
Why Should You Dump MOV?
- Lackluster 3.6% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Low free cash flow margin of 5.2% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Movado is trading at $37.77 per share, or 11.9x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than MOV.
UFP Technologies (UFPT)
One-Month Return: +20%
With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ: UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.
Why Are We Hesitant About UFPT?
- Modest revenue base of $608.9 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Adjusted operating margin was unchanged over the last two years, suggesting it failed to gain leverage on its fixed costs
At $272.14 per share, UFP Technologies trades at 26x forward P/E. Check out our free in-depth research report to learn more about why UFPT doesn’t pass our bar.
CNO Financial Group (CNO)
One-Month Return: +9.7%
Rebranded from Conseco in 2010 to signal a fresh start after navigating financial challenges, CNO Financial Group (NYSE: CNO) develops and markets health insurance, annuities, and life insurance products primarily targeting middle-income pre-retirees and retirees.
Why Should You Sell CNO?
- Growth in insurance policies was lackluster over the last five years as its 1% annual growth underperformed the typical financial institution
- Efficiency has decreased over the last five years as its pre-tax profit margin fell by 8.9 percentage points
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 6.2% annually over the last five years
CNO Financial Group’s stock price of $52.65 implies a valuation ratio of 1.8x forward P/B. If you’re considering CNO for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
