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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. On that note, here are three stocks getting more buzz than they deserve and some you should buy instead.
Marriott Vacations (VAC)
One-Month Return: +16.2%
Spun off from Marriott International in 1984, Marriott Vacations (NYSE:VAC) is a vacation company providing leisure experiences for travelers around the world.
Why Are We Out on VAC?
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Marriott Vacations is trading at $114.92 per share, or 11.8x forward P/E. Check out our free in-depth research report to learn more about why VAC doesn’t pass our bar.
LifeStance Health Group (LFST)
One-Month Return: +13.6%
With over 6,600 licensed mental health professionals treating more than 880,000 patients annually, LifeStance Health (NASDAQ:LFST) provides outpatient mental health services through a network of clinicians offering psychiatric evaluations, psychological testing, and therapy across 33 states.
Why Do We Think Twice About LFST?
- Revenue base of $1.58 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Negative returns on capital show management lost money while trying to expand the business
LifeStance Health Group’s stock price of $12.37 implies a valuation ratio of 30.1x forward P/E. If you’re considering LFST for your portfolio, see our FREE research report to learn more.
Charles River Laboratories (CRL)
One-Month Return: +33.2%
Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories (NYSE:CRL) provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies.
Why Should You Sell CRL?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $298.68 per share, Charles River Laboratories trades at 24x forward P/E. Dive into our free research report to see why there are better opportunities than CRL.
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 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.