The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.
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.
Sabre (SABR)
One-Month Return: +67.5%
Originally a division of American Airlines, Sabre (NASDAQ: SABR) is a technology provider for the global travel and tourism industry.
Why Should You Sell SABR?
- Lackluster 15.7% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Cash burn makes us question whether it can achieve sustainable long-term growth
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $1.66 per share, Sabre trades at 7x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SABR doesn’t pass our bar.
Mercury Systems (MRCY)
One-Month Return: +7.2%
Founded in 1981, Mercury Systems (NASDAQ: MRCY) specializes in providing processing subsystems and components for primarily defense applications.
Why Are We Out on MRCY?
- Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 5.6% for the past two years was weak
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 5.4 percentage points
- Earnings per share fell by 16.7% annually over the last five years while its revenue grew, partly because it diluted shareholders
Mercury Systems is trading at $86.00 per share, or 78.4x forward P/E. To fully understand why you should be careful with MRCY, check out our full research report (it’s free).
Tri Pointe Homes (TPH)
One-Month Return: +26.8%
Established in 2009 in California, Tri Pointe Homes (NYSE: TPH) is a United States homebuilder recognized for its innovative and sustainable approach to creating premium, life-enhancing homes.
Why Should You Dump TPH?
- Demand cratered as it couldn’t win new orders over the past two years, leading to an average 39.5% decline in its backlog
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.1 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
Tri Pointe Homes’s stock price of $46.38 implies a valuation ratio of 22.5x forward P/E. Read our free research report to see why you should think twice about including TPH in your portfolio.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
