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 getting more buzz than they deserve and some you should buy instead.
Knowles (KN)
One-Month Return: +16.7%
With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE: KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications.
Why Is KN Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.9% annually over the last five years
- Modest revenue base of $593.2 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Knowles is trading at $28.99 per share, or 23.2x forward P/E. Read our free research report to see why you should think twice about including KN in your portfolio.
IAC (IAC)
One-Month Return: +13.2%
Originally known as InterActiveCorp and built through Barry Diller's strategic acquisitions since the 1990s, IAC (NASDAQ: IAC) operates a portfolio of category-leading digital businesses including Dotdash Meredith, Angi, and Care.com, focusing on digital publishing, home services, and caregiving platforms.
Why Do We Pass on IAC?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Earnings per share fell by 19.1% annually over the last five years while its revenue was flat, showing each sale was less profitable
- Push for growth has led to negative returns on capital, signaling value destruction
IAC’s stock price of $43.60 implies a valuation ratio of 28.2x forward P/E. If you’re considering IAC for your portfolio, see our FREE research report to learn more.
Hope Bancorp (HOPE)
One-Month Return: +13.2%
With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ: HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.
Why Should You Dump HOPE?
- Net interest income stagnated over the last five years and signal the need for new growth strategies
- Flat earnings per share over the last five years underperformed the sector average
- Tangible book value per share stagnated over the last two years, limiting its ability to leverage its balance sheet to make additional investments
At $12.26 per share, Hope Bancorp trades at 0.7x forward P/B. Check out our free in-depth research report to learn more about why HOPE doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
