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. All that said, here are three overhyped stocks that may correct and some you should consider instead.

Kellanova (K)

One-Month Return: -1.4%

With Corn Flakes as its first and most iconic product, Kellanova (NYSE: K) is a packaged foods company that is dominant in the cereal and snack categories.

Why Does K Worry Us?

1. Shrinking unit sales over the past two years imply it may need to invest in product improvements to get back on track
2. Performance over the past three years was negatively impacted by new share issuances as its earnings per share dropped by 4.4% annually, worse than its revenue
3. Capital intensity has ramped up over the last year as its free cash flow margin decreased by 3.5 percentage points

Kellanova is trading at $78.94 per share, or 20.9x forward P/E. Check out our free in-depth research report to learn more about why K doesn’t pass our bar.

Invesco (IVZ)

One-Month Return: +2%

With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE: IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.

Why Should You Dump IVZ?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.4% annually over the last five years
2. Earnings per share have contracted by 2.8% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
3. Underwhelming 5.8% return on equity reflects management’s difficulties in finding profitable growth opportunities

Invesco’s stock price of $21.43 implies a valuation ratio of 11.2x forward P/E. Read our free research report to see why you should think twice about including IVZ in your portfolio.

KeyCorp (KEY)

One-Month Return: +6.3%

Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.

Why Does KEY Fall Short?

1. 2.4% annual net interest income growth over the last five years was slower than its banking peers
2. Overall productivity fell over the last four years as its plummeting sales were accompanied by a degrading efficiency ratio
3. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

At $18.94 per share, KeyCorp trades at 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than KEY.

High-Quality Stocks for All Market Conditions

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 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 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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