The past year hasn’t been kind to the stocks featured in this article. Each has tumbled to its lowest point 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 is one stock where the poor sentiment is creating a buying opportunity and two where the skepticism is well-placed.
Two Stocks to Sell:
Lowe’s (LOW)
One-Month Return: -8.2%
Founded in North Carolina as Lowe’s North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials.
Why Does LOW Worry Us?
- Products have few die-hard fans as sales have declined by 2.6% annually over the last three years
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Gross margin of 33.3% is below its competitors, leaving less money for marketing and promotions
At $210.52 per share, Lowe’s trades at 16.3x forward P/E. If you’re considering LOW for your portfolio, see our FREE research report to learn more.
Shake Shack (SHAK)
One-Month Return: -25.6%
Started as a hot dog cart in New York City’s Madison Square Park, Shake Shack (NYSE:SHAK) is a fast-food restaurant known for its burgers and milkshakes.
Why Do We Think Twice About SHAK?
- Operating margin of 2.3% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- ROIC of -0.3% reflects management’s challenges in identifying attractive investment opportunities
Shake Shack is trading at $52.21 per share, or 44.3x forward P/E. Dive into our free research report to see why there are better opportunities than SHAK.
One Stock to Watch:
Celsius (CELH)
One-Month Return: -12.6%
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Why Are We Fans of CELH?
- Remarkable 56.1% revenue growth over the last three years demonstrates its ability to capture significant market share
- Unique products and pricing power are reflected in its stellar gross margin of 50.4%
- Earnings growth has trumped its peers over the last three years as its EPS has compounded at 215% annually
Celsius’s stock price of $28.22 implies a valuation ratio of 16.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
