3 Inflated Stocks We Steer Clear Of

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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.

But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here are three stocks getting more buzz than they deserve and some you should buy instead.

Electronic Arts (EA)

One-Month Return: +1.1%

Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ: EA) is one of the world’s largest video game publishers.

Why Do We Think Twice About EA?

  1. Muted 3% annual revenue growth over the last three years shows its demand lagged behind its consumer internet peers
  2. Anticipated sales growth of 2.6% for the next year implies demand will be shaky
  3. Costs have risen faster than its revenue over the last few years, causing its EBITDA margin to decline by 3.2 percentage points

Electronic Arts is trading at $205.34 per share, or 17.4x forward EV/EBITDA. Check out our free in-depth research report to learn more about why EA doesn’t pass our bar.

Match Group (MTCH)

One-Month Return: +12.4%

Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ: MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.

Why Is MTCH Not Exciting?

  1. Struggled with new customer acquisition as its payers averaged 4.5% declines
  2. Demand has fallen off a cliff over the last two years as its average revenue per user fell by 12.1% annually while it struggled to expand its customer base
  3. Estimated sales decline of 1% for the next 12 months implies a challenging demand environment

At $38.43 per share, Match Group trades at 9.5x forward EV/EBITDA. If you’re considering MTCH for your portfolio, see our FREE research report to learn more.

Allient (ALNT)

One-Month Return: +3.2%

Founded in 1962, Allient (NASDAQ: ALNT) develops and manufactures precision and specialty-controlled motion components and systems.

Why Does ALNT Worry Us?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 1.7% annually over the last two years
  2. Earnings per share have contracted by 2.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
  3. Underwhelming 7.6% return on capital reflects management’s difficulties in finding profitable growth opportunities

Allient’s stock price of $89.99 implies a valuation ratio of 31.6x forward P/E. Read our free research report to see why you should think twice about including ALNT in your portfolio.

High-Quality Stocks for All Market Conditions

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

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