Great things are happening to the stocks in this article. They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.

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 stocks getting more buzz than they deserve and some you should buy instead.

Designer Brands $(DBI.AU)$

One-Month Return: +12.3%

Founded in 1969 as a shoe importer and distributor, Designer Brands (NYSE:DBI) is an American discount retailer focused on footwear and accessories.

Why Are We Out on DBI?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. ROIC of 2.7% reflects management’s challenges in identifying attractive investment opportunities
3. High net-debt-to-EBITDA ratio of 11× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Designer Brands is trading at $3.29 per share, or 13x forward P/E. Check out our free in-depth research report to learn more about why DBI doesn’t pass our bar.

Newmark (NMRK)

One-Month Return: +37.1%

Founded in 1929, Newmark $(NMRK)$ provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.

Why Should You Dump NMRK?

1. Muted 7.4% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 0% for the last two years
3. Low returns on capital reflect management’s struggle to allocate funds effectively

Newmark’s stock price of $17.48 implies a valuation ratio of 11.1x forward P/E. To fully understand why you should be careful with NMRK, check out our full research report (it’s free).

Viatris (VTRS)

One-Month Return: +19.4%

Created through the 2020 merger of Mylan and Pfizer's Upjohn division, Viatris $(VTRS)$ is a healthcare company that develops, manufactures, and distributes branded and generic medicines across more than 165 countries worldwide.

Why Do We Avoid VTRS?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 4.9% annually over the last two years
2. Earnings per share fell by 12% annually over the last five years while its revenue grew, partly because it diluted shareholders
3. Negative returns on capital show that some of its growth strategies have backfired, and its shrinking returns suggest its past profit sources are losing steam

At $10.63 per share, Viatris trades at 4.6x forward P/E. Read our free research report to see why you should think twice about including VTRS in your portfolio.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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-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

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