The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. On that note, here are three stocks getting more buzz than they deserve and some you should buy instead.

nLIGHT (LASR)

One-Month Return: +12.4%

Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ: LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors.

Why Should You Sell LASR?

1. Annual revenue growth of 2.6% over the last five years was below our standards for the industrials sector
2. Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

nLIGHT is trading at $37.15 per share, or 141.2x forward P/E. Read our free research report to see why you should think twice about including LASR in your portfolio.

Charles River Laboratories (CRL)

One-Month Return: +13.3%

Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories (NYSE: CRL) provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies.

Why Are We Hesitant About CRL?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $199.52 per share, Charles River Laboratories trades at 19.2x forward P/E. If you’re considering CRL for your portfolio, see our FREE research report to learn more.

Royalty Pharma (RPRX)

One-Month Return: -3.2%

Pioneering a unique business model in the pharmaceutical industry since 1996, Royalty Pharma (NASDAQ: RPRX) acquires rights to receive portions of sales from successful biopharmaceutical products, providing funding to drug developers without conducting research itself.

Why Is RPRX Not Exciting?

1. Sales stagnated over the last two years and signal the need for new growth strategies
2. Modest revenue base of $2.35 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
3. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 4.4 percentage points

Royalty Pharma’s stock price of $38.64 implies a valuation ratio of 7.8x forward P/E. Check out our free in-depth research report to learn more about why RPRX doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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 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.