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 that are likely overheated and some you should look into instead.
Progyny (PGNY)
One-Month Return: -1.1%
Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ:PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.
Why Is PGNY Not Exciting?
- Modest revenue base of $1.27 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Progyny is trading at $26.04 per share, or 13.4x forward P/E. To fully understand why you should be careful with PGNY, check out our full research report (it’s free).
Zions Bancorporation (ZION)
One-Month Return: -0.6%
Founded in 1873 during Utah's pioneer era and named after Mount Zion in the Bible, Zions Bancorporation (NASDAQ:ZION) operates seven regional banks across the Western United States, providing commercial, retail, and wealth management services to over a million customers.
Why Does ZION Fall Short?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Forecasted net interest income decline of 37.2% for the upcoming 12 months implies demand will fall off a cliff
- Flat earnings per share over the last two years lagged its peers
At $58.82 per share, Zions Bancorporation trades at 1.2x forward P/B. If you’re considering ZION for your portfolio, see our FREE research report to learn more.
Comerica (CMA)
One-Month Return: +2.7%
Founded in 1849 during the California Gold Rush era, Comerica (NYSE:CMA) is a financial services company that provides commercial banking, retail banking, and wealth management services to businesses and individuals.
Why Do We Steer Clear of CMA?
- 3% annual net interest income growth over the last five years was slower than its banking peers
- Sales were less profitable over the last two years as its earnings per share fell by 23% annually, worse than its revenue declines
- Tangible book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle
Comerica’s stock price of $90.50 implies a valuation ratio of 1.6x forward P/B. Read our free research report to see why you should think twice about including CMA in your portfolio.
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 Strong Momentum Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.