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3 Inflated Stocks We Steer Clear Of

BF.B Cover Image

Great things are happening to the stocks in this article. They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.

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.

Brown-Forman (BF.B)

One-Month Return: +6.9%

Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE: BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.

Why Are We Cautious About BF.B?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. Sales are projected to be flat over the next 12 months and imply weak demand
  3. Operating margin declined by 6.6 percentage points over the last year as its sales cratered

Brown-Forman’s stock price of $28.61 implies a valuation ratio of 16.7x forward P/E. If you’re considering BF.B for your portfolio, see our FREE research report to learn more.

Timken (TKR)

One-Month Return: +17%

Established after the founder noticed the difficulty freight wagons had making sharp turns, Timken (NYSE: TKR) is a provider of industrial parts used across various sectors.

Why Do We Avoid TKR?

  1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  2. Anticipated sales growth of 3.4% for the next year implies demand will be shaky
  3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

Timken is trading at $109.88 per share, or 18.3x forward P/E. Check out our free in-depth research report to learn more about why TKR doesn’t pass our bar.

Ball (BALL)

One-Month Return: +16.9%

Started with a $200 loan in 1880, Ball (NYSE: BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.

Why Should You Dump BALL?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 3.1% annually over the last two years
  2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 21.4%
  3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

At $66.62 per share, Ball trades at 16.6x forward P/E. Read our free research report to see why you should think twice about including BALL in your portfolio.

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 6 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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