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.

However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. All that said, here are three stocks that are likely overheated and some you should look into instead.

One-Month Return: +23.2%

Boasting partnerships with media franchises like Marvel and One Piece, Funko (NASDAQ:FNKO) is a company specializing in creating and distributing licensed pop culture collectibles.

Why Are We Out on FNKO?

Muted 7.7% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers

Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $4.23 per share, Funko trades at 5.5x forward EV-to-EBITDA. If you’re considering FNKO for your portfolio, see our FREE research report to learn more.

One-Month Return: +39.4%

With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE:AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.

Why Do We Steer Clear of AMN?

Declining travelers on assignment over the past two years imply it may need to invest in improvements to get back on track

Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term

Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

AMN Healthcare Services is trading at $21.05 per share, or 29x forward P/E. Check out our free in-depth research report to learn more about why AMN doesn’t pass our bar.

One-Month Return: +20.9%

Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE:MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services.

Why Should You Sell MAN?

Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth

Sales over the last five years were less profitable as its earnings per share fell by 21.9% annually while its revenue was flat

Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

ManpowerGroup’s stock price of $36.27 implies a valuation ratio of 9.4x forward P/E. Read our free research report to see why you should think twice about including MAN in your portfolio, it’s free.

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.