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 getting more buzz than they deserve and some you should buy instead.
The RealReal (REAL)
One-Month Return: +35.9%
Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.
Why Are We Hesitant About REAL?
- Sales trends were unexciting over the last three years as its 4.1% annual growth was below the typical consumer internet company
- Customer spending has dipped by 11.7% on average as it focused on growing its users
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
The RealReal’s stock price of $8.03 implies a valuation ratio of 26.6x forward EV/EBITDA. To fully understand why you should be careful with REAL, check out our full research report (it’s free).
Teradyne (TER)
One-Month Return: +17%
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Why Does TER Fall Short?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 14.4 percentage points
- Sales over the last five years were less profitable as its earnings per share fell by 4.4% annually while its revenue was flat
At $110.98 per share, Teradyne trades at 27.9x forward P/E. Check out our free in-depth research report to learn more about why TER doesn’t pass our bar.
Artivion (AORT)
One-Month Return: +39.8%
Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE:AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease.
Why Does AORT Worry Us?
- Revenue base of $405 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Poor free cash flow margin of -0.6% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Low returns on capital reflect management’s struggle to allocate funds effectively
Artivion is trading at $42.85 per share, or 57.3x forward P/E. If you’re considering AORT for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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