3 Hyped Up Stocks We Think Twice About

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.

1-800-FLOWERS (FLWS)

One-Month Return: +21.7%

Founded in 1976, 1-800-FLOWERS (NASDAQ:FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.

Why Do We Pass on FLWS?

1. Products and services fail to spark excitement with consumers, as seen in its flat sales over the last five years
2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

1-800-FLOWERS is trading at $3.90 per share, or 5.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why FLWS doesn’t pass our bar.

Rush Enterprises (RUSHA)

One-Month Return: +20.5%

Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.

Why Do We Think RUSHA Will Underperform?

1. Sales stagnated over the last two years and signal the need for new growth strategies
2. Sales are projected to tank by 3.6% over the next 12 months as demand evaporates further
3. Sales over the last two years were less profitable as its earnings per share fell by 12% annually while its revenue was flat

Rush Enterprises’s stock price of $56.28 implies a valuation ratio of 18.3x forward P/E. Read our free research report to see why you should think twice about including RUSHA in your portfolio.

MasTec (MTZ)

One-Month Return: +15.5%

Involved in the 1996 Olympic Games MasTec (NYSE:MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.

Why Does MTZ Fall Short?

1. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 12.9%
2. Operating margin of 3.1% fell from an already low starting point over the last five years because it pursued growth instead of profits
3. 4.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $223.31 per share, MasTec trades at 30.6x forward P/E. To fully understand why you should be careful with MTZ, check out our full research report (it’s free for active Edge members).

Stocks We Like More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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