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.
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 facing legitimate challenges and some alternatives worth exploring instead.
Beyond Meat (BYND)
One-Month Return: -18.1%
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.
Why Do We Steer Clear of BYND?
- Declining unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Cash-burning history makes us doubt the long-term viability of its business model
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $2.53 per share, Beyond Meat trades at 0.5x forward price-to-sales. Check out our free in-depth research report to learn more about why BYND doesn’t pass our bar.
TreeHouse Foods (THS)
One-Month Return: -11.7%
Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE: THS) produces a wide range of private-label foods for grocery and food service customers.
Why Should You Dump THS?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Gross margin of 16.8% is an output of its commoditized products
- Low returns on capital reflect management’s struggle to allocate funds effectively
TreeHouse Foods is trading at $23.13 per share, or 9.7x forward P/E. If you’re considering THS for your portfolio, see our FREE research report to learn more.
ArcBest (ARCB)
One-Month Return: -16.6%
Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ: ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight.
Why Are We Out on ARCB?
- 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 32.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
ArcBest’s stock price of $60.71 implies a valuation ratio of 9.1x forward P/E. Dive into our free research report to see why there are better opportunities than ARCB.
Stocks That Overcame Trump’s 2018 Tariffs
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
