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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here are three stocks getting more buzz than they deserve and some you should buy instead.
Donaldson (DCI)
One-Month Return: +13.6%
Playing a vital role in the historic Apollo 11 mission, Donaldson (NYSE:DCI) manufacturers and sells filtration equipment for various industries.
Why Do We Think Twice About DCI?
- Muted 4.2% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Anticipated sales growth of 3.8% for the next year implies demand will be shaky
Donaldson’s stock price of $109.97 implies a valuation ratio of 3.4x forward price-to-sales. Read our free research report to see why you should think twice about including DCI in your portfolio.
Cummins (CMI)
One-Month Return: +4.5%
With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE:CMI) offers engines and power systems.
Why Are We Hesitant About CMI?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 24.5%
- Waning returns on capital imply its previous profit engines are losing steam
At $593 per share, Cummins trades at 22.7x forward P/E. Check out our free in-depth research report to learn more about why CMI doesn’t pass our bar.
Washington Trust Bancorp (WASH)
One-Month Return: +20.2%
Founded in 1800 and operating as Rhode Island's oldest community bank, Washington Trust Bancorp (NASDAQ:WASH) is a regional bank holding company offering commercial banking, mortgage lending, personal banking, and wealth management services.
Why Should You Sell WASH?
- 3.7% annual net interest income growth over the last five years was slower than its banking peers
- Net interest margin of 2.2% is well below other banks, signaling its loans aren’t very profitable
- Sales over the last five years were less profitable as its earnings per share fell by 7.8% annually while its revenue was flat
Washington Trust Bancorp is trading at $35.55 per share, or 1.2x forward P/B. To fully understand why you should be careful with WASH, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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.
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