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.
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.
Deere (DE)
One-Month Return: +8.1%
Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE:DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.
Why Do We Pass on DE?
- Annual sales declines of 14% for the past two years show its products and services struggled to connect with the market during this cycle
- Sales were less profitable over the last two years as its earnings per share fell by 17.8% annually, worse than its revenue declines
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Deere is trading at $513.99 per share, or 26.1x forward P/E. Dive into our free research report to see why there are better opportunities than DE.
Woodward (WWD)
One-Month Return: +18.8%
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ:WWD) designs, services, and manufactures energy control products and optimization solutions.
Why Does WWD Give Us Pause?
- Sales trends were unexciting over the last five years as its 2.8% annual growth was below the typical industrials company
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 3.1% annually
- Free cash flow margin shrank by 12.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Woodward’s stock price of $233 implies a valuation ratio of 35.2x forward P/E. Check out our free in-depth research report to learn more about why WWD doesn’t pass our bar.
AT&T (T)
One-Month Return: -1.2%
Founded by Alexander Graham Bell, AT&T (NYSE:T) is a multinational telecomm conglomerate providing a range of communications and internet services.
Why Are We Out on T?
- Annual sales declines of 7.3% for the past five years show its products and services struggled to connect with the market
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 9% annually, worse than its revenue
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $27.81 per share, AT&T trades at 13.3x forward P/E. Read our free research report to see why you should think twice about including T in your portfolio.
Stocks We Like More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.