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. All that said, here are three stocks getting more buzz than they deserve and some you should buy instead.
Thermon (THR)
One-Month Return: +3.6%
Creating the first packaged tracing systems, Thermon (NYSE:THR) is a leading provider of engineered industrial process heating solutions for process industries.
Why Is THR Not Exciting?
- Sales trends were unexciting over the last two years as its 3.5% annual growth was below the typical industrials company
- Anticipated sales growth of 4% for the next year implies demand will be shaky
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.6% annually
Thermon’s stock price of $40.95 implies a valuation ratio of 19.8x forward P/E. If you’re considering THR for your portfolio, see our FREE research report to learn more.
Wintrust Financial (WTFC)
One-Month Return: +1.3%
Founded in 1991 as a community-focused alternative to big banks in the Chicago area, Wintrust Financial (NASDAQGS:WTFC) operates community banks in the Chicago area and provides specialty finance services including insurance premium financing and wealth management.
Why Are We Wary of WTFC?
- Sales trends were unexciting over the last two years as its 8.2% annual growth was below the typical banking company
- Annual earnings per share growth of 6.1% underperformed its revenue over the last two years, showing its incremental sales were less profitable
- Low interest coverage ratio indicates the company may struggle to service its debt obligations if operational performance deteriorates
Wintrust Financial is trading at $143.13 per share, or 1.4x forward P/B. Check out our free in-depth research report to learn more about why WTFC doesn’t pass our bar.
TriCo Bancshares (TCBK)
One-Month Return: -3.8%
Founded in 1975 and headquartered in Chico, California, TriCo Bancshares (NASDAQ:TCBK) operates Tri Counties Bank, providing personal, small business, and commercial banking services through branches across California.
Why Does TCBK Fall Short?
- Annual net interest income growth of 6% over the last five years was below our standards for the banking sector
- Net interest margin shrank by 17 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
- Sales were less profitable over the last two years as its earnings per share fell by 4.2% annually, worse than its revenue declines
At $48.09 per share, TriCo Bancshares trades at 1.2x forward P/B. Read our free research report to see why you should think twice about including TCBK in your portfolio.
Stocks We Like More
Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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.