Hitting a new 52-week low can be a pivotal moment for any stock. These floors often mark either the beginning of a turnaround story or confirmation that a company faces serious headwinds.
While market timing can be an extremely profitable strategy, it has burned many investors and requires rigorous analysis - something we specialize in at StockStory. Keeping that in mind, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
Golden Entertainment (GDEN)
One-Month Return: -9.3%
Founded in 2001, Golden Entertainment (NASDAQ: GDEN) is a gaming company operating casinos, taverns, and distributed gaming platforms.
Why Do We Think Twice About GDEN?
- Products and services aren't resonating with the market as its revenue declined by 3.3% annually over the last five years
- Projected sales for the next 12 months are flat and suggest demand will be subdued
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 3.3% for the last two years
Golden Entertainment’s stock price of $22.18 implies a valuation ratio of 30.4x forward P/E. Read our free research report to see why you should think twice about including GDEN in your portfolio.
Mister Car Wash (MCW)
One-Month Return: -7.3%
Formerly known as Hotshine Holdings, Mister Car Wash (NYSE: MCW) offers car washes across the United States through its conveyorized service.
Why Do We Steer Clear of MCW?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $4.93 per share, Mister Car Wash trades at 10.7x forward P/E. To fully understand why you should be careful with MCW, check out our full research report (it’s free for active Edge members).
Graphic Packaging Holding (GPK)
One-Month Return: -13.3%
Founded in 1991, Graphic Packaging (NYSE: GPK) is a provider of paper-based packaging solutions for a wide range of products.
Why Should You Dump GPK?
- Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Earnings per share have dipped by 10.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Free cash flow margin shrank by 8.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Graphic Packaging Holding is trading at $17.52 per share, or 8.4x forward P/E. Dive into our free research report to see why there are better opportunities than GPK.
Stocks We Like More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
