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.
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. That said, here is one stock where the poor sentiment is creating a buying opportunity and two facing legitimate challenges.
Two Stocks to Sell:
PepsiCo (PEP)
One-Month Return: -1.3%
With a history that goes back more than a century, PepsiCo (NASDAQ: PEP) is a household name in food and beverages today and best known for its flagship soda.
Why Does PEP Worry Us?
- Annual sales growth of 4.2% over the last three years lagged behind its consumer staples peers as its large revenue base made it difficult to generate incremental demand
- Falling unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
PepsiCo’s stock price of $129.91 implies a valuation ratio of 15.6x forward P/E. Check out our free in-depth research report to learn more about why PEP doesn’t pass our bar.
G-III (GIII)
One-Month Return: -22.2%
Founded as a small leather goods business, G-III (NASDAQ: GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.
Why Should You Dump GIII?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Estimated sales decline of 1.3% for the next 12 months implies an even more challenging demand environment
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
G-III is trading at $21.77 per share, or 5.7x forward P/E. If you’re considering GIII for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Procter & Gamble (PG)
One-Month Return: +0.7%
Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble (NYSE: PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.
Why Is PG on Our Radar?
- Dominant market position is represented by its $83.93 billion in revenue, which gives it negotiating power with suppliers and retailers
- Highly efficient business model is illustrated by its impressive 25.2% operating margin
- Robust free cash flow margin of 18.6% gives it many options for capital deployment
At $161.99 per share, Procter & Gamble trades at 22.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum 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 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.
