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.
But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here are three stocks getting more buzz than they deserve and some you should buy instead.
Western Digital (WDC)
One-Month Return: +8.6%
Founded in 1970 by a Motorola employee, Western Digital (NASDAQ: WDC) is a leading producer of hard disk drives, SSDs and flash memory.
Why Does WDC Give Us Pause?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.7% annually over the last five years
- Negative 7.7% gross margin means it loses money on every sale and must pivot or scale quickly to survive
- Poor free cash flow margin of 4.4% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Western Digital is trading at $122.05 per share, or 17.8x forward P/E. Check out our free in-depth research report to learn more about why WDC doesn’t pass our bar.
Cadre (CDRE)
One-Month Return: +19.7%
Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Does CDRE Fall Short?
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 1.7 percentage points
- Flat earnings per share over the last four years lagged its peers
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7 percentage points
Cadre’s stock price of $41.30 implies a valuation ratio of 28.6x forward P/E. If you’re considering CDRE for your portfolio, see our FREE research report to learn more.
Repligen (RGEN)
One-Month Return: +22.7%
With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ: RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.
Why Is RGEN Risky?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 16.9 percentage points
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $154.54 per share, Repligen trades at 80.3x forward P/E. To fully understand why you should be careful with RGEN, check out our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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 Exlservice (+354% 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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