Exciting developments are taking place for the stocks in this article. They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here are three stocks getting more buzz than they deserve and some you should buy instead.
EverQuote (EVER)
One-Month Return: +33.6%
Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Why Does EVER Fall Short?
- Expensive marketing campaigns hurt its profitability and make us wonder what would happen if it let up on the gas
EverQuote is trading at $19.52 per share, or 0.9x forward price-to-gross profit. To fully understand why you should be careful with EVER, check out our full research report (it’s free).
AMC Entertainment (AMC)
One-Month Return: +39.3%
With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE:AMC) operates movie theaters primarily in the US and Europe.
Why Do We Avoid AMC?
- Lackluster 2.3% annual revenue growth over the last two years indicates the company is losing ground to competitors
- Free cash flow margin is expected to remain in place over the coming year
AMC Entertainment’s stock price of $2.02 implies a valuation ratio of 14.5x forward EV-to-EBITDA. If you’re considering AMC for your portfolio, see our FREE research report to learn more.
Viking (VIK)
One-Month Return: +13%
From a single river cruise offering to a fleet of 96 vessels across multiple continents, Viking (NYSE:VIK) operates a fleet of small luxury cruise ships offering river, ocean, and expedition voyages focused on cultural enrichment and destination immersion.
Why Do We Think VIK Will Underperform?
- 17.8% annual revenue growth over the last two years was slower than its consumer discretionary peers
- Operating margin of 21.9% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 20.9% for the last two years
At $89.34 per share, Viking trades at 27.4x forward P/E. To fully understand why you should be careful with VIK, check out our full research report (it’s free).
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.