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.
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 that are likely overheated and some you should look into instead.
YETI (YETI)
One-Month Return: +3.3%
Founded by two brothers from Texas, YETI (NYSE: YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.
Why Do We Pass on YETI?
- Lackluster 12.7% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Free cash flow margin is forecasted to shrink by 13.5 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
YETI’s stock price of $44.79 implies a valuation ratio of 16.5x forward P/E. Read our free research report to see why you should think twice about including YETI in your portfolio.
Vishay Precision (VPG)
One-Month Return: +0.7%
Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE: VPG) operates as a global provider of precision measurement and sensing technologies.
Why Should You Sell VPG?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 9% annually over the last two years
- Earnings per share fell by 15.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Vishay Precision is trading at $39.27 per share, or 40.7x forward P/E. Check out our free in-depth research report to learn more about why VPG doesn’t pass our bar.
Allstate (ALL)
One-Month Return: +0.7%
Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous "You're in good hands" slogan, Allstate (NYSE: ALL) is one of America's largest personal property and casualty insurers, offering protection for autos, homes, and personal property.
Why Is ALL Not Exciting?
- Estimated sales growth of 2.5% for the next 12 months implies demand will slow from its two-year trend
- Static combined ratio over the last five years shows it couldn’t improve its operations
- Annual book value per share growth of 3.2% over the last five years lagged behind its insurance peers as its large balance sheet made it difficult to generate incremental capital growth
At $203.68 per share, Allstate trades at 2x forward P/B. Dive into our free research report to see why there are better opportunities than ALL.
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 5 Growth Stocks for this month. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
