Great things are happening to the stocks in this article. They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase. But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. 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: +36.7% Spun off from Marriott International in 1984, Marriott Vacations (NYSE:VAC) is a vacation company providing leisure experiences for travelers around the world. Why Do We Think VAC Will Underperform? Performance surrounding its conducted tours has lagged its peers Incremental sales over the last five years were much less profitable as its earnings per share fell by 6.9% annually while its revenue grew High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens Marriott Vacations is trading at $71.88 per share, or 10.6x forward P/E. If you’re considering VAC for your portfolio, see our FREE research report to learn more. Sotera Health Company (SHC) One-Month Return: +25.1% With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use. Why Are We Wary of SHC? 5.9% annual revenue growth over the last two years was slower than its healthcare peers Revenue base of $1.11 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale Poor free cash flow margin of 1.4% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends At $13.12 per share, Sotera Health Company trades at 16.7x forward P/E. Dive into our free research report to see why there are better opportunities than SHC. Sabre (SABR) One-Month Return: +43.8% Originally a division of American Airlines, Sabre (NASDAQ:SABR) is a technology provider for the global travel and tourism industry. Why Are We Out on SABR? Demand for its offerings was relatively low as its number of central reservation system transactions has underwhelmed Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.9% for the last two years Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders Story Continues Sabre’s stock price of $2.92 implies a valuation ratio of 15.9x forward P/E. To fully understand why you should be careful with SABR, check out our full research report (it’s free). High-Quality Stocks for All Market Conditions Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. View Comments
3 Overrated Stocks in Hot Water
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