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. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
Domino’s (DPZ)
One-Month Return: -12.3%
Founded by two brothers in Michigan, Domino’s (NASDAQ:DPZ) is a globally recognized pizza chain known for its creative marketing and fast delivery.
Why Is DPZ Not Exciting?
- Sales trends were unexciting over the last seven years as its 5.2% annual growth was below the typical restaurant company
- Estimated sales growth of 6% for the next 12 months is soft and implies weaker demand
Domino’s is trading at $323.50 per share, or 16.8x forward P/E. Check out our free in-depth research report to learn more about why DPZ doesn’t pass our bar.
Zimmer Biomet (ZBH)
One-Month Return: -13.1%
With a history dating back to 1927 and a presence in over 100 countries worldwide, Zimmer Biomet (NYSE:ZBH) designs and manufactures orthopedic products including knee and hip replacements, surgical tools, and robotic technologies for joint reconstruction and spine surgeries.
Why Does ZBH Fall Short?
- Sales trends were unexciting over the last two years as its 6.2% annual growth was below the typical healthcare company
- Estimated sales growth of 2.4% for the next 12 months implies demand will slow from its two-year trend
- Low returns on capital reflect management’s struggle to allocate funds effectively
Zimmer Biomet’s stock price of $82.88 implies a valuation ratio of 9.8x forward P/E. If you’re considering ZBH for your portfolio, see our FREE research report to learn more.
Cogent (CCOI)
One-Month Return: -21.9%
Operating a massive network spanning 20,000 miles of fiber optic cable and connecting to over 3,200 buildings worldwide, Cogent Communications (NASDAQ:CCOI) provides high-speed Internet access, private network services, and data center colocation to businesses and bandwidth-intensive organizations across 54 countries.
Why Are We Out on CCOI?
- Annual sales declines of 4.1% for the past two years show its products and services struggled to connect with the market during this cycle
- Diminishing returns on capital suggest its earlier profit pools are drying up
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
At $16.70 per share, Cogent trades at 9.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including CCOI in your portfolio.
Stocks We Like More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging for this month – FREE. Get Our Top 5 Growth 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
