Overheated Stocks to Watch: Couchbase, Academy Sports, and Carnival

Three stocks that are likely overheated are Couchbase (BASE), Academy Sports (ASO), and Carnival (CCL). BASE has subpar billings growth, a competitive market, and negative free cash flow. ASO has muted annual revenue growth, weak same-store sales trends, and increased capital intensity. CCL has estimated sales growth of 4% and low free cash flow margin.

Investors are advised to exercise caution with three stocks that have shown signs of overheating: Couchbase (BASE), Academy Sports and Outdoors Inc (ASO), and Carnival Corporation (CCL). These companies have exhibited financial indicators that may suggest overvaluation or unsustainable growth.

Couchbase (BASE)
Couchbase, a provider of NoSQL database services, has experienced subpar billings growth, a competitive market, and negative free cash flow. The company's leadership, including Chair, President, and CEO Cain Matthew M, has been selling shares, which could indicate concerns about the company's financial health. On July 15, 2025, Cain sold 12,357 shares at a weighted average price of $24.3034, totaling $300,317 [1].

Academy Sports and Outdoors Inc (ASO)
Academy Sports and Outdoors Inc has seen muted annual revenue growth, weak same-store sales trends, and increased capital intensity. While the stock surged 3.26% on July 17, 2025, reaching an intraday high of $53.78, it remains 16.87% below its 52-week high and 61.12% above its 52-week low. Analysts forecast an average target price of $54.29, but the stock's valuation may be unsustainable given its current financial performance [2].

Carnival Corporation (CCL)
Carnival Corporation has reported estimated sales growth of 4% and low free cash flow margin. The company recently completed a $3 billion notes offering, which was aimed at refinancing existing debt and optimizing its capital structure. However, the stock's valuation may be overinflated, and investors should consider the company's profitability and stock valuations before making investment decisions [3].

Investors are encouraged to conduct thorough due diligence and consider these stocks' long-term prospects before making any investment decisions. The financial indicators highlighted in this article serve as cautionary flags and should be taken into account alongside other investment criteria.

References:
[1] https://www.tradingview.com/news/tradingview:2664a894ad475:0-couchbase-ceo-sells-over-12-000-shares/
[2] https://www.gurufocus.com/news/2985502/academy-sports-and-outdoors-inc-aso-shares-up-326-on-jul-17
[3] https://www.gurufocus.com/news/2982886/carnival-corporation-ccl-completes-3-billion-notes-offering