Exciting developments are taking place for the stocks in this article. They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.

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 that are likely overheated and some you should look into instead.

OneWater (ONEW)

One-Month Return: +26.3%

A public company since early 2020, OneWater Marine (NASDAQ: ONEW) sells boats, yachts, and other marine products.

Why Is ONEW Risky?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Incremental sales over the last three years were much less profitable as its earnings per share fell by 53.6% annually while its revenue grew
3. High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $14.07 per share, OneWater trades at 29.7x forward P/E. To fully understand why you should be careful with ONEW, check out our full research report (it’s free).

Titan International (TWI)

One-Month Return: +32%

Acquiring Goodyear’s farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.

Why Do We Avoid TWI?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 3.7% annually over the last two years
2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Titan International is trading at $10.66 per share, or 9.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why TWI doesn’t pass our bar.

ArcBest (ARCB)

One-Month Return: +33.9%

Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ: ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight.

Why Do We Steer Clear of ARCB?

1. Flat unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Sales were less profitable over the last two years as its earnings per share fell by 31.7% annually, worse than its revenue declines
3. Waning returns on capital imply its previous profit engines are losing steam

ArcBest’s stock price of $109.46 implies a valuation ratio of 23.1x forward P/E. Dive into our free research report to see why there are better opportunities than ARCB.

Stocks We Like More

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 9 Market-Beating Stocks. 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.