3 Inflated Stocks We're Skeptical Of

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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here are three overhyped stocks that may correct and some you should consider instead.

Tilray (TLRY)

One-Month Return: +118%

Founded in 2013, Tilray Brands (NASDAQ:TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.

Why Should You Dump TLRY?

1. Efficiency has decreased over the last year as its operating margin fell by 255.8 percentage points
2. Earnings per share fell by 32.4% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable
3. 8.1 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

Tilray’s stock price of $1.53 implies a valuation ratio of 19.5x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including TLRY in your portfolio.

LeMaitre (LMAT)

One-Month Return: +15.7%

Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.

Why Does LMAT Fall Short?

1. Modest revenue base of $234.6 million gives it less fixed cost leverage and fewer distribution channels than larger companies
2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 2.3 percentage points
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.3 percentage points

LeMaitre is trading at $95.41 per share, or 42.2x forward P/E. Check out our free in-depth research report to learn more about why LMAT doesn’t pass our bar.

CVS Health (CVS)

One-Month Return: +19.8%

With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE:CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.

Why Do We Think Twice About CVS?

1. Annual sales growth of 6.8% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 4.8% annually while its revenue grew
3. Free cash flow margin shrank by 2.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $71.44 per share, CVS Health trades at 11x forward P/E. If you’re considering CVS for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound 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).

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