3 Hyped Up Stocks with Mounting Challenges
Great things are happening to the stocks in this article. They're all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here are three stocks getting more buzz than they deserve and some you should buy instead.
One-Month Return: +3.4%
Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.
Why Is MRVL Not Exciting?
Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.3% annually over the last two years
Historical operating losses point to an inefficient cost structure
Push for growth has led to negative returns on capital, signaling value destruction, and its falling returns suggest its earlier profit pools are drying up
At $60.72 per share, Marvell Technology trades at 21.8x forward P/E. To fully understand why you should be careful with MRVL, check out our full research report (it's free).
One-Month Return: +12.1%
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE:PLOW) offers snow and ice equipment for the roads and sidewalks.
Why Is PLOW Risky?
Flat sales over the last two years suggest it must find different ways to grow during this cycle
Incremental sales over the last five years were much less profitable as its earnings per share fell by 2.4% annually while its revenue grew
Free cash flow margin dropped by 5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Douglas Dynamics's stock price of $26.97 implies a valuation ratio of 14x forward P/E. Check out our free in-depth research report to learn more about why PLOW doesn't pass our bar.
One-Month Return: +7.6%
With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders.
Why Are We Cautious About AHCO?
Muted 3.9% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
ROIC of 1.2% reflects management's challenges in identifying attractive investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned
AdaptHealth is trading at $8.78 per share, or 8.1x forward P/E. Read our free research report to see why you should think twice about including AHCO in your portfolio, it's free.
Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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.
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Better Cybersecurity Stock: CrowdStrike or SentinelOne?
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By protecting these devices, companies make it harder for cyberattackers to gain access to their internal networks, where they might steal sensitive information, delete files, interfere with systems, or even lock them down with ransomware to extort payments from their victims. While endpoint protection is how both companies land clients, each bolsters its offerings with an array of other cybersecurity products that clients can use to create a protection suite tailored to their unique situations. Since these two direct competitors offer highly similar product types, it's hard to declare either a winner on this front from an investor perspective. Winner: Tie. From a sheer size perspective, CrowdStrike is the clear winner. During its fiscal 2026 first quarter, which ended April 30, CrowdStrike's annual recurring revenue (ARR) rose to $4.4 billion. SentinelOne's ARR of $948 million in its fiscal Q1 was less than a quarter of that. While size doesn't always matter, in this case, it does. 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