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.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. All that said, here are three stocks getting more buzz than they deserve and some you should buy instead.
America's Car-Mart (CRMT)
One-Month Return: +53.9%
With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ: CRMT) sells used cars to budget-conscious consumers.
Why Should You Dump CRMT?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Issuance of new shares over the last three years caused its earnings per share to fall by 41.5% annually, even worse than its revenue declines
- Negative EBITDA restricts its access to capital and increases the probability of shareholder dilution if things turn unexpectedly
At $3.94 per share, America's Car-Mart trades at 27.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why CRMT doesn’t pass our bar.
OneWater (ONEW)
One-Month Return: +12.2%
A public company since early 2020, OneWater Marine (NASDAQ: ONEW) sells boats, yachts, and other marine products.
Why Is ONEW Risky?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Sales over the last three years were less profitable as its earnings per share fell by 62.5% annually while its revenue was flat
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
OneWater’s stock price of $12.85 implies a valuation ratio of 19.4x forward P/E. If you’re considering ONEW for your portfolio, see our FREE research report to learn more.
Coty (COTY)
One-Month Return: +37.8%
With a portfolio boasting many household brands, Coty (NYSE: COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.
Why Do We Steer Clear of COTY?
- 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
- Estimated sales decline of 1.1% for the next 12 months implies a challenging demand environment
- Incremental sales over the last three years were much less profitable as its earnings per share fell by 29.3% annually while its revenue grew
Coty is trading at $2.70 per share, or 8.3x forward P/E. To fully understand why you should be careful with COTY, check out our full research report (it’s free).
Stocks We Like More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
