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 two stocks poised to prove the bears wrong and one facing legitimate challenges.

One Software Stock to Sell:

Tenable (TENB)

One-Month Return: -2.3%

Starting with the widely-used Nessus vulnerability scanner first released in 1998, Tenable (NASDAQ: TENB) provides exposure management solutions that help organizations identify, assess, and prioritize cybersecurity vulnerabilities across their IT infrastructure and cloud environments.

Why Does TENB Give Us Pause?

1. Products, pricing, or go-to-market strategy may need some adjustments as its 10.4% average billings growth over the last year was weak
2. Estimated sales growth of 7.1% for the next 12 months implies demand will slow from its two-year trend
3. Operating margin improvement of 3.4 percentage points over the last year demonstrates its ability to scale efficiently

At $27.01 per share, Tenable trades at 3.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than TENB.

Two Software Stocks to Buy:

The Trade Desk (TTD)

One-Month Return: -14.3%

Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ: TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.

Why Is TTD a Good Business?

1. Winning new contracts that can potentially increase in value as its billings growth has averaged 20.1% over the last year
2. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
3. Healthy operating margin of 18.9% shows it’s a well-run company with efficient processes, and its rise over the last year was fueled by some leverage on its fixed costs

The Trade Desk is trading at $40.86 per share, or 6.1x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

GitLab (GTLB)

One-Month Return: -16.2%

With its all-remote workforce pioneering a new approach to software development, GitLab (NASDAQ: GTLB) provides a single-application DevSecOps platform that helps development, operations, and security teams collaborate to build, secure, and deploy software faster.

Why Is GTLB a Top Pick?

1. Ability to secure long-term commitments with customers is evident in its 29.3% ARR growth over the last year
2. Superior software functionality and low servicing costs are reflected in its best-in-class gross margin of 88%
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

GitLab’s stock price of $38.39 implies a valuation ratio of 5.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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