Exciting developments are taking place for the stocks in this article. They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here are three stocks getting more buzz than they deserve and some you should buy instead.
EchoStar (SATS)
One-Month Return: +13.8%
Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ: SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.
Why Do We Think SATS Will Underperform?
- Annual sales declines of 6.3% for the past two years show its products and services struggled to connect with the market during this cycle
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.8 percentage points
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
EchoStar’s stock price of $28.61 implies a valuation ratio of 5.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SATS doesn’t pass our bar.
Western Alliance Bancorporation (WAL)
One-Month Return: +8.7%
Operating through five distinct regional banking divisions across the western United States, Western Alliance Bancorporation (NYSE: WAL) provides commercial banking, treasury management, mortgage services, and specialized financial solutions through its banking divisions and subsidiaries.
Why Does WAL Give Us Pause?
- Day-to-day expenses have swelled relative to revenue over the last four years as its efficiency ratio increased by 11.3 percentage points
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 11.5% annually
- Annual interest expenses are high relative to its profits, increasing the probability of its failure to meet certain borrowing obligations
At $81.20 per share, Western Alliance Bancorporation trades at 1.2x forward P/B. To fully understand why you should be careful with WAL, check out our full research report (it’s free).
F.N.B. Corporation (FNB)
One-Month Return: +13.6%
Tracing its roots back to 1864 during the Civil War era, F.N.B. Corporation (NYSE: FNB) is a diversified financial services holding company that provides banking, wealth management, and insurance services to consumers and businesses across seven states and Washington, D.C.
Why Are We Cautious About FNB?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Net interest margin dropped by 27.3 basis points (100 basis points = 1 percentage point) over the last two years, implying the company’s spreads fell as competitors entered the market
- Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 7% annually
F.N.B. Corporation is trading at $16.07 per share, or 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than FNB.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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