The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.
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 that are likely overheated and some you should look into instead.
Nature's Sunshine (NATR)
One-Month Return: +12.4%
Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ:NATR) manufactures and sells nutritional and personal care products.
Why Are We Wary of NATR?
- Lackluster 4.4% annual revenue growth over the last three years indicates the company is losing ground to competitors
- Revenue base of $480.1 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Poor expense management has led to an operating margin of 4.8% that is below the industry average
Nature's Sunshine’s stock price of $26.67 implies a valuation ratio of 23.4x forward P/E. Check out our free in-depth research report to learn more about why NATR doesn’t pass our bar.
Carriage Services (CSV)
One-Month Return: +16.8%
Established in 1991, Carriage Services (NYSE:CSV) is a provider of funeral and cemetery services in the United States.
Why Do We Steer Clear of CSV?
- Lackluster 4.8% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Poor free cash flow margin of 11.7% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Carriage Services is trading at $48.65 per share, or 13.9x forward P/E. Read our free research report to see why you should think twice about including CSV in your portfolio.
CVB Financial (CVBF)
One-Month Return: +11.2%
With roots dating back to 1974 and a focus on serving small and medium-sized businesses, CVB Financial (NASDAQ:CVBF) operates Citizens Business Bank, providing banking, lending, and trust services to businesses and individuals across California.
Why Are We Out on CVBF?
- Net interest income trends were unexciting over the last five years as its 2% annual growth was below the typical banking firm
- Earnings per share have contracted by 2.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Capital generation is forecasted to stall as its estimated tangible book value per share for the next 12 months is flat
At $20.69 per share, CVB Financial trades at 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than CVBF.
Stocks We Like More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
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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.