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. On that note, here are three stocks getting more buzz than they deserve and some you should buy instead.
Gray Television (GTN)
One-Month Return: +30.6%
Specializing in local media coverage, Gray Television (NYSE:GTN) is a broadcast company supplying digital media to various markets in the United States.
Why Should You Dump GTN?
- Sales trends were unexciting over the last five years as its 5.4% annual growth was below the typical consumer discretionary company
- Stagnant returns on capital show management has failed to improve the company’s business quality
- High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $5.91 per share, Gray Television trades at 1.7x forward P/E. Dive into our free research report to see why there are better opportunities than GTN.
Encore Capital Group (ECPG)
One-Month Return: +18.7%
Operating in the often misunderstood world of debt collection since 1999, Encore Capital Group (NASDAQ:ECPG) purchases portfolios of defaulted consumer debt at deep discounts and works with individuals to recover these obligations while helping them toward financial recovery.
Why Do We Think Twice About ECPG?
- Sales trends were unexciting over the last five years as its 3.3% annual growth was below the typical financials company
- Low return on equity reflects management’s struggle to allocate funds effectively
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Encore Capital Group’s stock price of $80.75 implies a valuation ratio of 6.8x forward P/E. Read our free research report to see why you should think twice about including ECPG in your portfolio.
Citigroup (C)
One-Month Return: +20.6%
With operations in nearly 160 countries and a history dating back to 1812, Citigroup (NYSE:C) is a global financial services company that provides banking, investment, wealth management, and payment solutions to consumers, corporations, and governments.
Why Does C Fall Short?
- Large revenue base makes it harder to expand quickly, and its annual net interest income growth of 7% over the last five years was below our standards for the banking sector
- Estimated net interest income growth of 4.4% for the next 12 months implies demand will slow from its five-year trend
- Earnings per share lagged its peers over the last five years as they only grew by 2.5% annually
Citigroup is trading at $132.06 per share, or 1.1x forward P/B. To fully understand why you should be careful with C, check out our full research report (it’s free).
Stocks We Like More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.