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 that are likely overheated and some you should look into instead.

RingCentral (RNG)

One-Month Return: +28.2%

Built on its proprietary Message Video Phone (MVP) platform that unifies multiple communication methods, RingCentral (NYSE: RNG) provides AI-driven cloud communications and collaboration solutions that enable businesses to connect through voice, video, messaging, and contact center services.

Why Is RNG Risky?

1. Average billings growth of 5% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
2. Estimated sales growth of 5% for the next 12 months implies demand will slow from its three-year trend
3. Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions

RingCentral’s stock price of $30.50 implies a valuation ratio of 1.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than RNG.

AMC Networks (AMCX)

One-Month Return: +19.8%

Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ: AMCX) is a broadcaster producing a diverse range of television shows and movies.

Why Should You Sell AMCX?

1. Products and services aren't resonating with the market as its revenue declined by 4% annually over the last five years
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

AMC Networks is trading at $7.20 per share, or 2.4x forward P/E. If you’re considering AMCX for your portfolio, see our FREE research report to learn more.

Premier (PINC)

One-Month Return: +19.4%

Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ: PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes.

Why Are We Out on PINC?

1. Sales tumbled by 12.9% annually over the last two years, showing market trends are working against its favor during this cycle
2. Overall productivity fell over the last two years as its plummeting sales were accompanied by a decline in its adjusted operating margin
3. Earnings per share decreased by more than its revenue over the last five years, partly because it diluted shareholders

At $25.89 per share, Premier trades at 18.6x forward P/E. To fully understand why you should be careful with PINC, check out our full research report (it’s free).

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. 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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