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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here are three stocks getting more buzz than they deserve and some you should buy instead.
Pediatrix Medical Group (MD)
One-Month Return: +1.8%
With a network of approximately 2,620 affiliated physicians caring for some of the most vulnerable patients, Pediatrix Medical Group (NYSE:MD) provides specialized physician services focused on neonatal, maternal-fetal, pediatric cardiology and other pediatric subspecialty care across 37 states.
Why Is MD Not Exciting?
- Sales tumbled by 1.3% annually over the last two years, showing market trends are working against it during this cycle
- Revenue base of $1.95 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Anticipated sales growth of 1.3% for the next year implies demand will be shaky
Pediatrix Medical Group is trading at $26.17 per share, or 11.3x forward P/E. If you’re considering MD for your portfolio, see our FREE research report to learn more.
JPMorgan Chase (JPM)
One-Month Return: +5.6%
Tracing its roots back to 1799 when its earliest predecessor was founded by Aaron Burr, JPMorgan Chase (NYSE:JPM) is a leading financial services company offering investment banking, consumer banking, commercial banking, and asset management services globally.
Why Does JPM Worry Us?
- The company has faced growth challenges as its 7.8% annual revenue increases over the last two years fell short of other banking companies
- Inferior net interest margin of 2.5% means it must compensate for lower profitability through increased loan originations
- Overall productivity is expected to decrease over the next year as Wall Street thinks its efficiency ratio will degrade by 2.2 percentage points
JPMorgan Chase’s stock price of $357.90 implies a valuation ratio of 2.6x forward P/B. Read our free research report to see why you should think twice about including JPM in your portfolio.
NOV (NOV)
One-Month Return: +5.5%
With roots stretching back to 1862 when it began making equipment for early oil fields, NOV (NYSE:NOV) manufactures drilling rigs, drill bits, pumps, and other equipment used to drill oil and gas wells.
Why Does NOV Give Us Pause?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.4% annually over the last ten years
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 20.6%
- Low free cash flow margin of 2.9% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
At $20.63 per share, NOV trades at 18.7x forward P/E. Dive into our free research report to see why there are better opportunities than NOV.
Stocks We Like More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.