3 Inflated Stocks We Think Twice About

Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.

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 overhyped stocks that may correct and some you should consider instead.

ON24 (ONTF)

One-Month Return: +37.5%

Powering over 1,700 companies' virtual marketing efforts since 1998, ON24 (NYSE:ONTF) provides a cloud-based platform that enables businesses to create interactive digital experiences and capture actionable data from customer engagement.

Why Do We Pass on ONTF?

1. Offerings couldn’t generate interest over the last year as its billings have averaged 8.1% declines
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. Poor expense management has led to operating margin losses

ON24 is trading at $7.96 per share, or 2.5x forward price-to-sales. Check out our free in-depth research report to learn more about why ONTF doesn’t pass our bar.

Dine Brands (DIN)

One-Month Return: +10.1%

Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.

Why Do We Think DIN Will Underperform?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
2. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 6.7 percentage points
3. 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Dine Brands’s stock price of $37.82 implies a valuation ratio of 8.3x forward P/E. If you’re considering DIN for your portfolio, see our FREE research report to learn more.

Kirby (KEX)

One-Month Return: +13.5%

Transporting goods along all U.S. coasts, Kirby (NYSE:KEX) provides inland and coastal marine transportation services.

Why Are We Cautious About KEX?

1. 4.7% annual revenue growth over the last two years was slower than its industrials peers
2. Free cash flow margin dropped by 4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. ROIC of 3.6% reflects management’s challenges in identifying attractive investment opportunities

At $125.89 per share, Kirby trades at 18.6x forward P/E. Dive into our free research report to see why there are better opportunities than KEX.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.