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.
Price charts only tell part of the story. Our team at StockStory evaluates each company's underlying fundamentals to separate temporary setbacks from structural declines. Keeping that in mind, here are three stocks facing legitimate challenges and some alternatives worth exploring instead.
Under Armour (UAA)
One-Month Return: -1.4%
Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE: UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.
Why Should You Dump UAA?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Sales are projected to tank by 2.8% over the next 12 months as its demand continues evaporating
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Under Armour’s stock price of $4.79 implies a valuation ratio of 81.5x forward P/E. To fully understand why you should be careful with UAA, check out our full research report (it’s free for active Edge members).
DaVita (DVA)
One-Month Return: -0.3%
With over 2,600 dialysis centers across the United States and a presence in 13 countries, DaVita (NYSE: DVA) operates a network of dialysis centers providing treatment and care for patients with chronic kidney disease and end-stage kidney disease.
Why Is DVA Not Exciting?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.7% over the last five years was below our standards for the healthcare sector
- Flat treatments over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Estimated sales growth of 3.3% for the next 12 months implies demand will slow from its two-year trend
At $127.61 per share, DaVita trades at 10.9x forward P/E. If you’re considering DVA for your portfolio, see our FREE research report to learn more.
ASGN (ASGN)
One-Month Return: -7.6%
Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, ASGN (NYSE: ASGN) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.
Why Is ASGN Risky?
- Sales tumbled by 6.8% annually over the last two years, showing market trends are working against its favor during this cycle
- Sales are projected to be flat over the next 12 months and imply weak demand
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 1.8% annually while its revenue grew
ASGN is trading at $45.77 per share, or 9.7x forward P/E. Read our free research report to see why you should think twice about including ASGN in your portfolio.
Stocks We Like More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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
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