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3 Hyped Up Stocks We Approach with Caution

CSGS Cover Image

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.

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.

CSG (CSGS)

One-Month Return: +3.3%

Powering billions of critical customer interactions annually, CSG Systems (NASDAQ: CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services.

Why Does CSGS Worry Us?

  1. 1.6% annual revenue growth over the last two years was slower than its business services peers
  2. Projected sales growth of 2% for the next 12 months suggests sluggish demand
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

CSG is trading at $79.82 per share, or 15.9x forward P/E. Read our free research report to see why you should think twice about including CSGS in your portfolio.

Jackson Financial (JXN)

One-Month Return: +11.4%

Spun off from British insurer Prudential plc in 2021 after more than 60 years as its U.S. subsidiary, Jackson Financial (NYSE: JXN) offers annuity products and retirement solutions that help Americans grow and protect their retirement savings and income.

Why Is JXN Not Exciting?

  1. Net premiums earned expanded by 2.5% annually over the last two years, falling below our expectations for the insurance sector
  2. Day-to-day expenses have swelled relative to revenue over the last four years as its pre-tax profit margin fell by 26.1 percentage points
  3. Earnings per share have dipped by 1.9% annually over the past four years, which is concerning because stock prices follow EPS over the long term

Jackson Financial’s stock price of $122.21 implies a valuation ratio of 0.6x forward P/B. Dive into our free research report to see why there are better opportunities than JXN.

United Bankshares (UBSI)

One-Month Return: +10.5%

With roots dating back to 1982 and a strong presence in the Mid-Atlantic region, United Bankshares (NASDAQ: UBSI) is a bank holding company that provides commercial and retail banking services through its United Bank subsidiary across multiple states.

Why Are We Hesitant About UBSI?

  1. Net interest income trends were unexciting over the last five years as its 9.8% annual growth was below the typical banking firm
  2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 4.6% annually
  3. Capital generation will likely be soft over the next 12 months as Wall Street’s estimates imply tepid tangible book value per share growth of 7.2%

At $43.16 per share, United Bankshares trades at 1x forward P/B. Check out our free in-depth research report to learn more about why UBSI doesn’t pass our bar.

Stocks We Like More

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 9 Market-Beating Stocks. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.

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