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3 Out-of-Favor Stocks Skating on Thin Ice

BIGC Cover Image

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. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

BigCommerce (BIGC)

One-Month Return: -0.8%

Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ: BIGC) provides software for businesses to easily create online stores.

Why Should You Dump BIGC?

  1. Underwhelming ARR growth of 4% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
  2. Estimated sales growth of 3.7% for the next 12 months implies demand will slow from its three-year trend
  3. Suboptimal cost structure is highlighted by its history of operating margin losses

BigCommerce is trading at $4.96 per share, or 1.1x forward price-to-sales. Read our free research report to see why you should think twice about including BIGC in your portfolio.

Molson Coors (TAP)

One-Month Return: -8.8%

Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE: TAP) is a global brewing giant with a rich history dating back more than two centuries.

Why Does TAP Worry Us?

  1. Falling unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
  2. Anticipated sales growth of 1.1% for the next year implies demand will be shaky
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $48.23 per share, Molson Coors trades at 7.5x forward P/E. To fully understand why you should be careful with TAP, check out our full research report (it’s free).

Hain Celestial (HAIN)

One-Month Return: -15%

Sold in over 75 countries around the world, Hain Celestial (NASDAQ: HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.

Why Do We Avoid HAIN?

  1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  2. Forecasted revenue decline of 5.6% for the upcoming 12 months implies demand will fall even further
  3. Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable

Hain Celestial’s stock price of $1.53 implies a valuation ratio of 3.6x forward P/E. Check out our free in-depth research report to learn more about why HAIN doesn’t pass our bar.

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 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 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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