The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.

But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. On that note, here are three overhyped stocks that may correct and some you should consider instead.

VSE Corporation (VSEC)

One-Month Return: +14.4%

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ: VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

Why Does VSEC Fall Short?

1. Gross margin of 17.3% reflects its high production costs
2. Cash-burning history makes us doubt the long-term viability of its business model
3. ROIC of 5.1% reflects management’s challenges in identifying attractive investment opportunities

VSE Corporation is trading at $191.50 per share, or 46.3x forward P/E. Check out our free in-depth research report to learn more about why VSEC doesn’t pass our bar.

Littelfuse (LFUS)

One-Month Return: +4.4%

The developer of the first blade-type automotive fuse, Littelfuse (NASDAQ: LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries.

Why Do We Think Twice About LFUS?

1. Sales tumbled by 2.5% annually over the last two years, showing market trends are working against its favor during this cycle
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $270.51 per share, Littelfuse trades at 21.7x forward P/E. To fully understand why you should be careful with LFUS, check out our full research report (it’s free for active Edge members).

Ford (F)

One-Month Return: +2.4%

Established to make automobiles accessible to a broader segment of the population, Ford (NYSE: F) designs, manufactures, and sells a variety of automobiles, trucks, and electric vehicles.

Why Do We Steer Clear of F?

1. Flat vehicles sold over the past two years imply it may need to invest in improvements to get back on track
2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 22.5% annually
3. 9× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Ford’s stock price of $13.46 implies a valuation ratio of 11.5x forward P/E. Read our free research report to see why you should think twice about including F in your portfolio.

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 6 Stocks for this week. 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 Tecnoglass (+1,754% 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.