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 is one stock poised to prove the bears wrong and two facing legitimate challenges.
Two Stocks to Sell:
WD-40 (WDFC)
One-Month Return: +3.1%
Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ: WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.
Why Are We Wary of WDFC?
- 6.1% annual revenue growth over the last three years was slower than its consumer staples peers
- Revenue base of $620 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its three-year trend
WD-40’s stock price of $199.15 implies a valuation ratio of 32.2x forward P/E. If you’re considering WDFC for your portfolio, see our FREE research report to learn more.
Kyndryl (KD)
One-Month Return: -15.4%
Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers.
Why Do We Think Twice About KD?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.8% annually over the last five years
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Push for growth has led to negative returns on capital, signaling value destruction
At $23.62 per share, Kyndryl trades at 7.8x forward P/E. Check out our free in-depth research report to learn more about why KD doesn’t pass our bar.
One Stock to Watch:
Lantheus (LNTH)
One-Month Return: -5.5%
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Why Are We Positive On LNTH?
- Impressive 35.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Free cash flow margin grew by 19.6 percentage points over the last five years, giving the company more chips to play with
- Rising returns on capital show management is finding more attractive investment opportunities
Lantheus is trading at $53.50 per share, or 10.6x forward P/E. 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
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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-small-cap company Exlservice (+354% 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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