The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here are three stocks getting more buzz than they deserve and some you should buy instead.
1-800-FLOWERS (FLWS)
One-Month Return: -3.8%
Founded in 1976, 1-800-FLOWERS (NASDAQ: FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.
Why Should You Dump FLWS?
- Products and services aren't resonating with the market as its revenue declined by 5.5% annually over the last five years
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $4.29 per share, 1-800-FLOWERS trades at 0.2x forward price-to-sales. If you’re considering FLWS for your portfolio, see our FREE research report to learn more.
Viasat (VSAT)
One-Month Return: +12.9%
Operating a fleet of 23 satellites that orbit the Earth and beam connectivity from space, Viasat (NASDAQ: VSAT) provides satellite-based communications networks and services for airlines, maritime vessels, governments, businesses, and residential customers worldwide.
Why Does VSAT Fall Short?
- Earnings per share fell by 2.6% annually over the last five years while its revenue grew, partly because it diluted shareholders
- Cash-burning history makes us doubt the long-term viability of its business model
- Negative returns on capital show that some of its growth strategies have backfired
Viasat is trading at $72.33 per share, or 108.4x forward P/E. Dive into our free research report to see why there are better opportunities than VSAT.
ProFrac (ACDC)
One-Month Return: +23.3%
Operating one of the largest electric-powered fracturing fleets in North America, ProFrac (NASDAQ: ACDC) provides hydraulic fracturing services that help oil and gas companies extract hydrocarbons from underground shale formations.
Why Are We Cautious About ACDC?
- Costly operations and weak unit economics result in an inferior gross margin of 32.5% that must be offset through higher production volumes
- Day-to-day expenses have swelled relative to revenue over the last five years as its EBITDA margin fell by 8.1 percentage points
- Low free cash flow margin of 3.9% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
ProFrac’s stock price of $7.45 implies a valuation ratio of 0.7x forward price-to-sales. Read our free research report to see why you should think twice about including ACDC in your portfolio.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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.
