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.

While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. On that note, here are three stocks that are likely overheated and some you should look into instead.

Lindblad Expeditions (LIND)

One-Month Return: +31.1%

Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ: LIND) offers cruising experiences to remote destinations in partnership with National Geographic.

Why Do We Avoid LIND?

1. Annual revenue growth of 14.5% over the last two years was below our standards for the consumer discretionary sector
2. Subpar operating margin of 4.8% constrains its ability to invest in process improvements or effectively respond to new competitive threats
3. Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year

Lindblad Expeditions is trading at $20.50 per share, or 288.4x forward P/E. Check out our free in-depth research report to learn more about why LIND doesn’t pass our bar.

UniFirst (UNF)

One-Month Return: +14.4%

With a fleet of trucks making weekly deliveries to over 300,000 customer locations, UniFirst (NYSE: UNF) provides, rents, cleans, and maintains workplace uniforms and protective clothing for businesses across various industries.

Why Are We Hesitant About UNF?

1. 3.5% annual revenue growth over the last two years was slower than its business services peers
2. Anticipated sales growth of 2.5% for the next year implies demand will be shaky
3. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 2.1% annually

UniFirst’s stock price of $235.33 implies a valuation ratio of 33.2x forward P/E. Dive into our free research report to see why there are better opportunities than UNF.

Gates Industrial Corporation (GTES)

One-Month Return: +23.5%

Helping create one of the most memorable moments for the iconic “Jurassic Park” film, Gates (NYSE: GTES) offers power transmission and fluid transfer equipment for various industries.

Why Are We Cautious About GTES?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Anticipated sales growth of 3.9% for the next year implies demand will be shaky
3. Underwhelming 7.1% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $27.77 per share, Gates Industrial Corporation trades at 16.9x forward P/E. To fully understand why you should be careful with GTES, check out our full research report (it’s free).

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 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.