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 is one stock where you should be greedy instead of fearful and two facing legitimate challenges.

Two Stocks to Sell:

Cars.com (CARS)

One-Month Return: +3.2%

Originally started as a joint venture between several media companies including The Washington Post and The New York Times, Cars.com (NYSE: CARS) is a digital marketplace that connects new and used car buyers and sellers.

Why Are We Cautious About CARS?

1. Dealer Customers have stagnated over the last two years, indicating its platform may be struggling to differentiate itself from competitors
2. Estimated sales growth of 1.5% for the next 12 months implies demand will slow from its three-year trend
3. Earnings growth over the last three years fell short of the peer group average as its EPS only increased by 1.9% annually

Cars.com’s stock price of $11 implies a valuation ratio of 3.2x forward EV/EBITDA. Check out our free in-depth research report to learn more about why CARS doesn’t pass our bar.

Freshpet (FRPT)

One-Month Return: -20.8%

Standing out from typical processed pet foods, Freshpet (NASDAQ: FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.

Why Are We Hesitant About FRPT?

1. Subscale operations are evident in its revenue base of $1.01 billion, meaning it has fewer distribution channels than its larger rivals
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Negative returns on capital show management lost money while trying to expand the business

At $71.02 per share, Freshpet trades at 55.1x forward P/E. Dive into our free research report to see why there are better opportunities than FRPT.

One Stock to Buy:

GitLab (GTLB)

One-Month Return: -16.1%

Founded as an open-source project in 2011, GitLab (NASDAQ: GTLB) is a leading software development tools platform.

Why Are We Bullish on GTLB?

1. ARR growth averaged 31.7% over the last year, showing customers are willing to take multi-year bets on its offerings
2. Superior software functionality and low servicing costs result in a best-in-class gross margin of 88.6%
3. Operating margin expanded by 14.5 percentage points over the last year as it scaled and became more efficient

GitLab is trading at $42.10 per share, or 7x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 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-small-cap company Comfort Systems (+782% 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