3 Hyped Up Stocks with Open Questions

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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here are three stocks that are likely overheated and some you should look into instead.

Burlington (BURL)

One-Month Return: +18.4%

Founded in 1972 as a discount coat and outerwear retailer, Burlington Stores (NYSE:BURL) is now an off-price retailer that has broadened into general apparel, footwear, and home goods.

Why Is BURL Not Exciting?

1. Annual sales growth of 9.3% over the last three years lagged behind its consumer retail peers as its large revenue base made it difficult to generate incremental demand
2. 5.1 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position
3. Underwhelming 9% return on capital reflects management’s difficulties in finding profitable growth opportunities

Burlington is trading at $311.53 per share, or 29.1x forward P/E. If you’re considering BURL for your portfolio, see our FREE research report to learn more.

General Motors (GM)

One-Month Return: +8.1%

Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.

Why Are We Wary of GM?

1. Underwhelming unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Estimated sales decline of 1% for the next 12 months implies a challenging demand environment
3. High input costs result in an inferior gross margin of 12.2% that must be offset through higher volumes

At $81.88 per share, General Motors trades at 7.5x forward P/E. Dive into our free research report to see why there are better opportunities than GM.

Byline Bancorp (BY)

One-Month Return: +1%

Ranking as the fifth most active Small Business Administration lender in the country, Byline Bancorp (NYSE:BY) is a Chicago-based bank that provides banking services to small and medium-sized businesses, commercial real estate developers, and consumers.

Why Are We Cautious About BY?

1. Muted 7.7% annual revenue growth over the last two years shows its demand lagged behind its banking peers
2. Net interest margin shrank by 21.3 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
3. Annual earnings per share growth of 2.3% underperformed its revenue over the last two years, showing its incremental sales were less profitable

Byline Bancorp’s stock price of $29.60 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why BY doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.