The stocks featured in this article are seeing some big returns. Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.

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.

RH (RH)

One-Month Return: +32.4%

Formerly known as Restoration Hardware, RH (NYSE: RH) is a specialty retailer that exclusively sells its own brand of high-end furniture and home decor.

Why Are We Wary of RH?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
2. Earnings per share have contracted by 38.3% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
3. High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate

RH is trading at $216.74 per share, or 24.2x forward P/E. If you’re considering RH for your portfolio, see our FREE research report to learn more.

Cracker Barrel (CBRL)

One-Month Return: +26.1%

Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ: CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.

Why Do We Think CBRL Will Underperform?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
2. Earnings per share fell by 22.6% annually over the last six years while its revenue grew, showing its incremental sales were much less profitable
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Cracker Barrel’s stock price of $33.56 implies a valuation ratio of 17.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including CBRL in your portfolio.

Neogen (NEOG)

One-Month Return: +37.4%

Founded in 1981 and operating at the intersection of food safety and animal health, Neogen (NASDAQ: NEOG) develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.

Why Do We Pass on NEOG?

1. Annual sales declines of 2.1% for the past two years show its products and services struggled to connect with the market during this cycle
2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
3. Negative earnings profile makes it challenging to secure favorable financing terms from lenders

At $9.41 per share, Neogen trades at 33x forward P/E. Check out our free in-depth research report to learn more about why NEOG doesn’t pass our bar.

Stocks We Like More

Check out the high-quality names we’ve flagged in 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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.