The past year hasn’t been kind to the stocks featured in this article. Each has tumbled to their lowest points in 12 months, leaving investors to decide whether they’re witnessing fire sales or falling knives.
At StockStory, we dig beneath the surface of price movements to uncover whether a company’s fundamentals justify its current valuation or suggest hidden potential. Keeping that in mind, here is one stock poised to prove the bears wrong and two where the outlook is warranted.
Two Stocks to Sell:
Service International (SCI)
One-Month Return: -5.6%
Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.
Why Is SCI Risky?
- Number of funeral services performed has disappointed over the past two years, indicating weak demand for its offerings
- Low free cash flow margin of 14.4% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $77.67 per share, Service International trades at 18.2x forward P/E. To fully understand why you should be careful with SCI, check out our full research report (it’s free).
Byrna (BYRN)
One-Month Return: -23.5%
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ:BYRN) is a provider of non-lethal weapons.
Why Does BYRN Worry Us?
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Negative returns on capital show that some of its growth strategies have backfired
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Byrna’s stock price of $5.00 implies a valuation ratio of 21.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including BYRN in your portfolio.
One Stock to Buy:
Progressive (PGR)
One-Month Return: -0.1%
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE:PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Why Is PGR a Good Business?
- Strong 16.5% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 41.6% over the last two years outstripped its revenue performance
- Industry-leading 23.6% return on equity demonstrates management’s skill in finding high-return investments
Progressive is trading at $199.32 per share, or 3.2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum – both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks – FREE. Get Our Strong Momentum Stocks for Free HERE.
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
