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.
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.
Clean Harbors (CLH)
One-Month Return: +9%
Established in 1980, Clean Harbors (NYSE:CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.
Why Does CLH Worry Us?
- Sales trends were unexciting over the last two years as its 5.6% annual growth was below the typical industrials company
- Estimated sales growth of 4% for the next 12 months implies demand will slow from its two-year trend
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 2.8% annually
Clean Harbors is trading at $300.60 per share, or 35.9x forward P/E. Check out our free in-depth research report to learn more about why CLH doesn’t pass our bar.
MYR Group (MYRG)
One-Month Return: +26.8%
Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ:MYRG) is a specialty contractor in the electrical construction industry.
Why Do We Think Twice About MYRG?
- Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 5.4% for the past two years was weak
- Gross margin of 10.8% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Waning returns on capital imply its previous profit engines are losing steam
MYR Group’s stock price of $329.20 implies a valuation ratio of 34.2x forward P/E. Read our free research report to see why you should think twice about including MYRG in your portfolio.
First Busey (BUSE)
One-Month Return: +10.1%
Tracing its roots back to 1868 during America's post-Civil War reconstruction era, First Busey (NASDAQ:BUSE) is a bank holding company that provides commercial and retail banking, wealth management, and payment technology solutions across Illinois, Missouri, Florida, and Indiana.
Why Is BUSE Not Exciting?
- Inferior net interest margin of 3.3% means it must compensate for lower profitability through increased loan originations
- Incremental sales over the last five years were less profitable as its 4.9% annual earnings per share growth lagged its revenue gains
- Forecasted tangible book value per share decline of 3.4% for the upcoming 12 months implies profitability will deteriorate significantly
At $26.98 per share, First Busey trades at 1x forward P/B. If you’re considering BUSE for your portfolio, see our FREE research report to learn more.
Stocks We Like More
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.